And, factor in the depreciation and other tax benefits, deductions, home office, vehicle expenses, etc. 

@Jorge Liang  I believe in CA the LLC fee is $800 annually, so factor that in too.

Just factor the cost into the rent.

Investors need to factor in zoning regulations and parking requirements, which are essential for smooth permit approval.

It is always valuable to be able to walk into a property an analyze cost to repair, it is a huge factor in determining the feasability.

Make sure to factor in insurance (slight change as rental), property tax (in our market is 2x a primary res), vacancy (3-5% in most markets), capex (old roof?)

Is thee a percentage of increased revenue based on the lake factor alone?  

@John BrennanWith an IRA, there is a key factor to consider when it comes to self-storage. 

While I did spend about $15K on renovations, that amount doesn't need to be factored in for this discussion.

@Merrick Hidalgo If your private REIT investment is returning only 10% of the principal and the remaining 90% is likely lost, the key factor in claiming a capital loss is when the loss is realized for tax purposes.