Another simplified illustration, but a person in each state buys a $1,000,000 house.

If they previously chose to pay $22/mo in fees on top of the rent, then they're clearly not that price sensitive at $800/mo.More than anything else, I'm merely trying to illustrate the true cost of rent collection methods that charge transaction fees on the tenant.

s point about agents doing more than meets the eye is important - to illustrate that, know that I and other agents, wholesalers, and investors spend $1,000's of dollars on marketing every month for the sole purpose of getting directly in front of unrepresented sellers.

The errors must be a) substantial to the result or b) so numerous that they illustrate incompetence.

Cardone is good for illustrating possibilities.

@Ben Einspahr What a great illustration of the power of leverage when used wisely. 

At the end of 15 years you have two properties cash flowing at 20k/yr after 15 years.These numbers aren't meant to be exceedingly realistic, they overlook things like taxes/expenses, and are just meant as a rough ballpark to illustrate the concept.

Everyone is calling "recapture" taxable income.I'm going to use your example with slight change to illustrate what I'm trying to say, let's say Sale price is $300k (this is quite realistic in the DFW market) so:Sale price: $300kAdjusted cost basis: Purchase price $220k + renovations $10k - depreciation $40k = $190kGain (assuming long term) is $300k - $190k = $110kUnder the recapture rule, here is what happens to the $110k Gain: $40k will be taxed at Ordinary Income (whatever bracket I'm in)  and the rest which is $70k will be taxed at Cap Gain Rate (i.e maxes out at 20% in 2018).Cheers...

Anecdotal evidence for sure but it illustrates just how disproportional these markets can be/have been for the past 40 years.   

@Jay Hinrichs Maybe your story is illustrative of one of the differences.