It needs to be an STR, which is defined as "average stay of 7 days or less"          3.

Real estate investing is forgiving; the average person can still make money even with some big mistakes. 

If the average tenant stays 2 years that is 5%.

In my estimation (local utility costs vary as well as temperature) it is about $400 per month on average. 

thanks - the above average properties will be seen and snapped up ...if interested in buying another property - get  pre approved so you can be prepared  to make an offer if a good property becomes avaiable - good luck 

Furthermore, I compare their costs with the averages we have on such buildings and standard estimates to make sure they are in line.

So, your eff. basis becomes sort of the average...

I also have a world class designer on my team that helps get these kind of properties from the average $60-$75k/yr range to over $100k/yr range (for 3bd homes; more the bigger you go).  

Yes, full calendar year average rental time. 5.

The average consumer here would probably never realize this is done, but I have experienced it first hand on multiple projects.