This may just be a Wells Fargo policy (all of my deals were auctioned by WF); they evidently offer cash for keys after foreclosure so their Asset Protection army can secure the place to prevent further deterioration and devaluing. 

Add a management fee back in to your calculation for two reasons1-Your time is worth money.2-If you needed to liquidate the property the potential buyers would be adding it in.3-Property management is an expense that devalues the property and the seller needs to accept that fact.4-The fact that you do not need property management is not an added value by the seller, it is an added value to you specifically.I'd also set it up so tenants pay for utilities, always.

An ARM HELOC that has no capacity to borrow against is just a ticking time bomb if interest rates start to rise (which could happen if the US dollar decides to devalue).

About your interest in my market: Brazil has entered into a recession and is now fighting against a political crisis, where congress and president can't agree on fiscal adjustments that must be made to "stop the bleed", Not to mention that currency devalued over 50% in the last 18 months (think of inflation in a recession environment), unemployment rise, and interest rate up at 14.25%, hence credit became scarce and expensive.In this light, construction industry, that represents 10% of our GDP, is among the ones that are suffering the most: prices going down, growing unsold inventory (24 months in certain zip codes), etc.

But if consumers strapped during a recession caused by dollar devaluation have less free cash flow overall to spend, I see that affecting buy and hold investors (flat or lower rents, higher costs) and consumers (lower offering prices on purchases, or failed loan qualifications) alike.Given the government debt to GDP ratios, which are far higher now than they were in 2008, I see this kind of recession as inevitable; it is just a matter of when.

The Dubai real estate markets are both affordable and provide high yields for Chinese investors, even after the recent devaluation of the Yuan towards the US dollar.

Meaning year over year the money is there but it is being devalued with the historic 2 to 3% annual inflation.So while leveraging to the hilt is also not encouraged it can make sense to take advantage of market opportunities in a good cycle.What I see people with millions do is keep cash flowing but watch out for the great deals.

The Fed and Congress have almost guaranteed a long and steady devaluation of the dollar through QE.

It appears that we are going to have 'QE Forever' and a continually devalued dollar.  

If you do not charge market  you are devaluing your investment if it is a purpose built rental property.