My best guess is their failure rate is more than 98%.The truth is not as “convenient”.

I've tracked my metrics over the years and I'm getting 99% hit rates with fewer than 1% wrong number percentages.

We only get a statement from the management company about the rate.

My properties average 4.9 star cleaning rating, which is hard to accomplish given how petty some guests can be.

Obviously, the at least 42 input variables can be adjusted to your own risk tolerance, but this is far easier/quicker than to re-create the entire input.You can find the link on my profile page.

My easiest, no hassle, lowest expense rentals are the ones where the tenants stay 5 + years, do minor maintenance themselves, call me immediately with any issues so I can fix them before they become much more costly, and agree to annual market adjusted rent rate increases.  

Other than that, it is really a light doc loan with not many strings attached compared to a conventional mortgage.

Definitely something to clarify upfront...If you’re replacing with another restaurant, it should be an easier transition since the setup is already in place.Your biggest risk is vacancy $450K/year is solid, but if you ever need a new tenant,  ensuring the lease rate is sustainable is key! 

How do you go about determining market rate?

Chicago is a lower appreciation market but with the trends we've been seeing with increased rates of hurricanes on the east coast and fires in the west, I do think long-term we will see some migration to the Midwest.