I think rents need to jump another 10%-20% in the next 2 years to make up for the increase in operating costs through property taxes, insurance, labor- plus added regulatory risk.You could get away with bad deals and operations when interest rates were 3%.

Although TSM index funds might be boring they make up for it in low fees and diversification.

-Memphis, TN – Great rent-to-price ratios, a large renter pool, and landlord-friendly legislation.

Just make sure to be selective on neighborhoods-there’s a big difference in tenant quality and appreciation potential block-to-block.Akron & Canton, OH – same landlord friendly legislative state, strong, diverse economy with consistent population growth.

I once had my value add being a law that was passed the legislation and recognizing what this lawwould do to valuations of certain properties.  

That first-year write-off can be great, but it has to be weighed against the cash flow gap until appreciation or tax savings make up the difference.

If you only have a small amount of equity, there's less to make up.

The rest of the down payment you were going to put away in my example is only $145k, but that money grows at some kind of rate over the years so I suppose it would end up being enough to make up for all the negative cashflow this property would ever incur.Even so, several large issues:- The opportunity cost on the $145k is major.

The rest of the world is catching on and legislators are working to tighten laws to limit wholesaling.

And of course, if a buyer comes along who needs to pay their agent more, that's fine as long as their offer is good enough to make up for it.