We didn't take the loss through the years for the original cost, just the operating cost like taxes and utilities. 

I have an ex-Home of mine (near Mesa College so close to one of the OPs) in my rentals.  

I had more than on contractor borrower of mine that finally figured that out got enough equity from relatives and now they are doing quite well and no way we can compete with them.but you start moving up north of 750k to purchase and unless your in the Bay area or prime LA  that does knock out a lot of competitionand you also have to remember this poster is paying CASH  HUGE difference as she has no cost of capital most of us need to borrow and if your borrowing HM which 95% have to as banks really don't service this niche ... her carrying cost ona say 700k project would eat up 20 to 30k EASY.. 

Lots of changes for those operating outside of the resort zoning. 

She handles mine and other Oahu investors as well.

I don't feel inheritance money is mine to put at higher risk. 

Here are my strategies to make my properties hardier for a recession hit:1) Using cash flow, pay of all short term debt, from friends and family and some credit cards. 2) Make sure all the deposits collected from tenants is in a separate accounts and is not touched by daily operations.

He's the brains, lead generator, agent, and property manager of the operation (I trust him completely, he's a rock star), I'm basically providing the money. 

The one that had tanks, we just instructed the tenant how to operate them. 

This rate is supposed to be a simple calculation of the net operating income divided by the cost of the investment.