What I consider real gambling is buying TK properties and underestimating PM costs, underestimating long-term cap-ex costs, underestimating tenant turnover costs and also believing everything the provider says....not to mention, purchasing an SFR in an area with demographics primarily composed of renters and a median income that will never drive up SFR prices (which typically happens when neighborhoods are predominantly owner-occupied), and in the middle of neighborhoods whose appraisals are artificially inflated by other TK property transactions.

For ex: they found 1 dead cockroach and called exterminator services which was approved by PM and was never communicated with me and they deducted from my rent. 

Wow, I learned a lot from you James, so to summarize:- the 30YFRM is introduced as many ex-soldiers are re-entering the society and US economy is started the credit-based economy ; it's almost like the Korean war created the 30YFRM product.- however, the 30YFRM doesn't create a bull run in real estate except during mid of 1970s, there were several things happening in the 70's : the disconnection between gold and the dollar and creating a disconnection between wage and productivity; and the massive inflation due to oil shortage of OPEC embargo.

If rent is $1600, then 10% for PM, some percentage for cap-ex, vacancy and repairs (since its newly rehabbed maybe 15% for all that), that gives you barely $200 cash flow?

For an ex-military man who considers doomsday scenarios, Orlando has the added appeal of sitting high and dry well above sea level for the sake of flooding and hurricanes.

Not to bag on my own industry or cause any offense but a high number in the industry are ex-cons and felons and not always reliable.I am currently building yes, right now for someone else, we have about 6 weeks left on an ADU for a client in town (North Idaho).

Buy and hold investors keep reserves for repairs/cap ex, do they not?  

ValuePenguin is a good source for the relative cost of insurance by state.Operational Costs - Costs like property taxes, insurance cost, state income taxes, regulatory costs (ex: time and cost to evict), inspections, rent control, etc., have a tremendous impact on your return.

Some thoughts- Too aggressive underwriting, most common in area of maintenance/cap ex- related to above, believing that rent minus PITI equals cash flow - not knowing the class of area- not knowing property tax basis will change (certain markets)- not getting an estoppel- believing residential RE is passive- not knowing LL laws.  

Ex: amusement parks, sports arenas, concert venue, nightlife, major parks, universities, festivals, races.