We have done that now 3 times and they now have super strict zoning that prohit any new rental not to mention the fact that they cant be within 500 feet of another property that is a vacation rental- measured by the distance from the furthest point of any property line.

You should be able to easily separate the plumbing at some point in th system to isolate units and install flow meters to measure individual usage.

The physical operating costs of a brokerage are pretty minimal when measured against gross revenue.

Cap rate being defined as some measure of income/return, has been a standard definition on BP.

:) But I still keep the umbrella policy as well for good measure.

Trying to measure risk relative to the time / money to be invested. 

I am an underwriter and nobody has ever mentioned measuring a persons credit worthiness as art, or science, it's just 1 part of assessing their risk.

However many investors insist on using cap rate as a performance metric (i.e. measure of income/return).

They are still allowing an inspection and appraisal, so you have opportunities to walk away and retrieve your deposit if the property doesn't measure up.

I don't see you doing any measurable value add on this property.