Management decisions that count as active participation include approving new tenants, deciding on rental terms, approving expenditures, and similar decisions.

The question is, does the cash flow merit that kind of expenditure?

When I walk the property I'm looking for capital expenditure issues: Roof, windows, HVAC system age and foundation condition.

But, I don't think you can learn how to deal with tenants, landlord tenant law, collecting rents, evictions, cashflow, contracts, capital expenditures, marketing, clogged toilets, lead paint hazards, dog bites, lot lines, and on and on from reviewing listings.He has a valid concern.

Material costs and personnel expense rose alongside interest rates increasing operating expenditures and shrinking net profit.

But that negative cashflow is normally AFTER considering reserves for: Repairs & Maintenance; Capital Expenditures; Vacancy and Property Management.

I would suggest not using $838 as the cash flow figure since you should account for other operational expenses like vacancy, repairs and maintenance, turnover costs, property management (if applicable), taxes & ins (if not included in mortgage), utilities while vacant, capital expenditures, etc.I would assume 35-50% expenses depending on your market for operating expenses before the cost of a mortgage.

@Felipe Rivera, I hate to be that guy—but having to finance major capital expenditures on a long-term rental is usually a sign that there weren't sufficient reserves in place at the start.

The BEST method for real estate investing is very simple: increase earnings, reduce expenditures, save, and invest from your own funds.You should focus on increasing earnings and learning how to manage your budget.

I've reached out to a few property managers for comps and opinions for rent and expenditures in the meantime.