I even kept the cash flow number conservative and the math still works, $1K/month on a $400K property is good but not a home run by any means. 

Also, our properties are commercial so it's not like I'd need to go to a duplex and sweep and clean the place.IMHO my CPA is not conservative at all. 

This negative equity position is one of many reasons that adding ADUs in a single family zone is not typically a good RE investment.OP whatever you decide to invest in, make sure you do thorough and conservative underwriting. good luck You’re right in that the level of underwriting I presented wasn’t institutional level - but for your average person just starting out, institutional grade analysis often makes the thought of investing overwhelming.

I'm a very conservative investor and may look through a hundred deals a month, and at the end of the year only invest in 4-5.

I’m far more conservative with the estimate because I’m worried about repairs.

If I did set out to invest in the local area, I would scrutinize the numbers like crazy and be extremely conservative with my estimates.

Portfolio Payoff is very conservative and safe.

I would just take into account that a lower down payment will mean a higher monthly payment so be sure to run the numbers conservatively in order to ensure your STR revenue is able to carry your monthly payment with this higher mortgage cost. 

It's a guess, and you should be conservative. 

Be conservative with your numbers – When using a cash-on-cash calculator, I recommend budgeting at least 10% for maintenance and repairs instead of 5%.