There are expenses, capital expenditures, risk, annoyances, vacancies, taxes, insurance, loss of other opportunity costs.  

Horror Stories from those that did NOT Understand What they were Buying:https://www.biggerpockets.com/forums/48/topics/1137397-baltimore-a-path-to-never-ending-painhttps://www.biggerpockets.com/forums/432/topics/1231840-sell-at-a-loss-or-rent-at-a-losshttps://www.biggerpockets.com/forums/311/topics/840134-memphis-turnkey-tenant-turnover-costshttps://www.biggerpockets.com/forums/963/topics/1195280-experience-of-oos-investing-in-cleveland-after-15-years

For most people you will only save a little money on any PROFITS if you have a loss the first year.

Accepting cash is a terrible idea.I"m less concerned about the credit score as many residents have poor credit.Unless you go through all the steps to qualify them properly, the best steps you can take to avoid financial loss is to not take them on as long-term tenants.

NVDA one can clearly see big-$ pilling back in, which makes total sense. 

It’s not magic pill.

Tenant is responsible for any loss, damage, or breakage beyond normal wear and tear.

Horror Stories from those that did NOT Understand What they were Buying:https://www.biggerpockets.com/forums/48/topics/1137397-baltimore-a-path-to-never-ending-painhttps://www.biggerpockets.com/forums/432/topics/1231840-sell-at-a-loss-or-rent-at-a-losshttps://www.biggerpockets.com/forums/311/topics/840134-memphis-turnkey-tenant-turnover-costshttps://www.biggerpockets.com/forums/963/topics/1195280-experience-of-oos-investing-in-cleveland-after-15-years

I am left feeling that working with them was a wasted investment and decided to cut my losses and move on. 

An LLC or partnership passes losses through, while an S corp can help cut self-employment taxes if you’re active.