I get the concept of it and sounds like a valuable resource, but people tell me it is hard to qualify for and not worth it.

The problems are 1)markets where appreciation above inflation is sustained over decades is exceedingly rare (but they do exist), 2)in these type of markets your initial cash flow will be much lower (but not in the long run with rent increases) as compared to a market with high initial cash flow and no appreciation (negative appreciation after inflation), and 3)markets with long term appreciation by definition are not cheap so you will need some capital to get started.

Maybe I'm going about this wrong and someone can help correct my thought process (I'm using the 50% rule to estimate expenses since the proforma data seems suspect).Here is one example that I have seen:Property X$2,200,000.00Down Payment$770,000.00Loan Amount$1,430,000.00Annual Loan-$86,947.20Units111bed3Rent/unit$1,015.00Market Rent$1,050.002bed8Rent/unit$1,279.00Market Rent$1,305.00Gross Income$167,684.00NOI (50% rule)$83,842.00Yearly Income-$3,105.20Cash on Cash-0.40%Actual Cap rate3.81%Almost every property in my local area looks pretty similar to this one with negative COC or COC of 1-2%.

I don't have a background in accounting or real estate which I believe would be helpful in aiding me to understand some basic key concepts and calculations when learning what it takes to be successful in REI.

Asset protection is also different since you are considered to own the stock of a corporation, which depending on the state, can have negative consequences.

Jay Kaufman, Chair of the Joint Committee on Revenue, and then Rachel Lake, Operations and Constituent Services Director for Senator Julian Cyr, who represents the Cape and Islands.As we mentioned in previous communications on the topic of the Lodging Tax, the momentum is growing among Cape and Islands Chambers of Commerce and state legislators across the state to impose the 11.7% Lodging Tax to all short-term rentals, with 5.7% going to the state and up to 6% to the towns.Our opinion piece that was published in the Cape Cod Times on April 5, outlines our reasons for opposing this tax.Despite our concerted efforts for nearly ten years, it is becoming increasingly clear that legislators are intent on imposing this tax and will likely succeed.Homeowners can certainly continue to lobby against this tax, but a more realistic approach at this point might be to attempt to mitigate the negative effects it would have on the Cape and Islands.

I just need to find a way to break it to her that her cap rate is NEGATIVE. 

Nowadays, I get to enjoy a large monthly cash distribution in problem free months, but no cash flow in months with significant expenses.Now, when you have 100 units, the concept of averaging out your CapEx expense and setting aside funds for that purpose out of cash flow begins to make a lot more sense, and I'm sure that large investors do that.

 #3...interesting concept.

He has left behind a property in which he has zero to negative equity in.