Creating wealth should only be one of the components of overall healthy living and NOT the main objective. 

The key component that you are ignoring is supply.

Those are just guidelines as there are many components that need consideration.If I have no money out of pocket and the cash flow meets my criteria, I'd do the deal.

these are business's with real estate as a component.. just like those that lend money they are in the money lending business real estate is just one of the securities you use to create income via fee's and interest delta.I did a little business with the hotel folks  I think that the Patel's own about 50% of all 100 unit and under hotels in the US..

This appreciation is not taxed currently, and in my case likely never will be (including the depreciation recapture gain component).3) For the Cash Flow in excess of depreciation (i.e., the taxable rental income), I get the new 199 tax benefit which reduces my rental income taxability by another 20%.Compare this to taxable wages and I think you will see just how overwhelming the tax benefits of rental properties are if you select the right properties at the right time and manage them appropriately over a meaningful period of time.

However, there is an educational time component necessary.

Drawn by the metro’s low entry costs and attractive yields, investors are targeting assets with a value-add component.”

Turn over  Cap ex  and tenants that are under the median income of an area.But median income or median price point houses in most MSAs are not the highest returns out of the gate but have the stability and the ability to raise rent and you can do a much nicer job on the reno to cut down on major expenses.so bottom line we are talking about 30 to 60 year old homes generally speaking.. and most of the componants are beyond useful life.. so to get a home that is going to treat you well over the next decade you need.1. new roof  6 to 10k2.

You are so right - having a good property management company is one of the most important components of your Core 4 team.

Regardless of how real estate -ish we are here, there is a huuuuge technology component here, too.