The basic 3/2/2 ranch house you can buy for $90,000 - $130,000 and rent for $800 - $1,200 never seems to do more than break even, so the return is all appreciation and amortization, assuming you will sell some day and reap the reward. 

You may have -$100 of income within a state and would as a result owe $0 to the state in taxes.The penalty for not filing with the state might be $250 but the filing fees with a large firm like PwC / Deloitte might be $1,000 with the state.You do a risk / reward analysis and determine it is better to risk yourself to $250 later instead of paying $1,000 now.The question then becomes how large are the losses and should you file a return?

risky but without risk can one achieve reward ?

If you buy something that you can BRRRR it is a different risk and less reward.  

I currently virtual wholesale and find it rewarding even with the current conditions.

Of course, real estate operates on a micro basis and thus, good deals can be found at any time depending on your strategy, ability to grow income, and your risk/reward appetite.

The last sentence clearly states that after including the net rental income in the denominator or loss in the numerator, that the rental property mortgage payments are not also supposed to be included in the numerator as monthly obligations.

There are a few winners and their prices have been rewarded.   

Then, there was the foreclosure crisis and the loss of numerous first-time home buyers' properties.

Ive seen it play out poorly over the years being a plumber working in numerous buildings across the state.