But items like knob and tube or old plumbing might be less marketable, it won't affect the value of the house in comparison to the cost to remediate. 

I leave the modeling of catastrophic events like floods, terrorism, or the sequence of maintenance events to the insurance quants (I generally account for those major events when evaluating the macro market and would only do my analysis if the market was favorable.

If you want to use un-levered return as a metric for comparison in your given zip code I'd suggest developing your own.

@Jesse Paulsen Your Fountain Hills condo should rent out just fine and then purchase a multi-family in the Mesa area.Step 1 is a great lender to see what you qualify for and then it's time to locate properties, comparison shop them, evaluate, inspect etc.

So the specific laws to your state come in to play in comparison to what is written in your lease.

Asking Price is 556k        Appraised Value "Sales comparison approach" 598k         Built in 2004Decent location in the middle of townAll units currently rented "Units leased are 1 year leases" Unit A Leased Dec 2018 $775Unit B Leased Sept 1 2018 $700Unit C Leased Nov 2018 $900Unit D Same renter for 3 years, month to month current rent $850, they are upping the rent to $900 in Feb 2019Unit E Leased Oct 2018 $900Unit F same renter for 2 years, month to month current rent $850, they are upping the rent to $900 in Feb 2019Unit G Leased in April 7 2018- March 31, 2019 $700 Unit H same renter for 3 years, month to month current rent $675, they are upping rent to $725 in Feb 2019Total current income = $6,350   After rent increase next month income will be $6500Expenses - Tax $817- Est.

While kind of interesting, some part of the country trade on a price per square foot basis....while other places do not at all, making it sort of a bad comparison across multiple markets where the metric has no meaning.

However, you are doing a similar apples to oranges comparison, but for a particular section of town. 

In order to have a proper comparison you have to take into account the amount of time and effort spent on each investment.

(just pretend to be looking for an apartment)Many like to Greige the walls, and if you find 2 or 3 you can get an idea of what they think will be popular cabinet and counter colors in your area with Agreeable Gray (a form of Greige).For comparison, many public assistance projects use Navajo White or some for of it, because they don't have to worry about attracting renters.