.$16K / $500K down payment = 3.2% cash-on-cash return When you look at the seller provided (mild eye-roll) NOI calculations does it include any kind of cap-ex holdback?

We have 300 days of sunshine, amazing access to the outdoors, diverse cultural draws and relatively mild(ish) weather.I sound like a Dept of Commerce ad, but all in all I think it's pretty safe to say that if marijuana were outlawed again tomorrow, we'd have a slight relief in the absolute insanity that is our housing market and an equal amount of relief in the unbelievable traffic issues we're facing right now, but not so much that it will ever go back to the "good ol' days" when an oil and gas bust in the 80s decimated the state.

Find a neighborhood that had mild flooding, but is not in a flood plain.

Hillside construction on a mild slope, somewhere in Greater Los Angeles.Lower level south wall is leaning very visible per the pics below. 1st pic from the outside.

Hillside construction on a mild slope, somewhere in Greater Los Angeles.Lower level south wall is leaning very visible per the pics below. 1st pic from the outside.

As such, you'll want to be certain that they can handle the change from $70/month in electric bills during mild months to $200/month in the midst of winter.

He's very well off (that's putting it mildly) and he's already said he will sell all 3 to us on whatever timeline works for both of us. 

Thought I'd throw out this mildly interesting report from AirDNA -- the 2022 Forecast: U.S.

I would hate to have great commissions and low support vs great support and mild commissions. learn, grow, then make the decision to go after the money.

Then you need to estimate operating and maintenance costs, i.e. when you own an Airbnb, you provide paper towels, toilet paper, detergent, sheets (and therefore sheet replacements), towels, etc, plus you are paying for utilities, which you don't pay for in LTR (electric, maybe water, netflix/cable/etc).