How do you calculate risk when you are investing in residential real estate?

[Ran Iarovich]

I want to hear your thoughts on how you calculate the risk of failure for investing in real estate. As someone who has invested in equities my whole life I was trained to look at the WACC value or Beta of risk based on the fluctuation of similar equities. On the other hand, in real estate there are different metrics based on the type of investor you are. Do you calculate how much time you have to put into it? What about the risk of default? Do you mainly go on your gut instinct? I want to hear your thoughts and please feel free to be as creative as you want.