Stress Testing Potential Investments

[Account Closed]

When I am evaulating a potental investment, I put it through a series of "stress tests" (to borrow a banking term) to see if it will perform.

What worst-case sceanrios do you look at?

I look at:
-Long Term Vacancy: how much vacancy can I have and still cash flow?
-Crushing Maintenance Costs (every major system fails)
-Declining Rent: how will the cash flow look if asking rent is overestimated?