@David Dachtera. it doesn't work. the simple arithmetic has been proven bogus above.

I was taught this my the principal of one of the largest industrial REITs in the country and it has always proven to be true.

But that is because he has a proven track record and people trust he knows what he's doing because he has done it so many times. 

We do everything 100% by the Book, and through an easy and proven process.

It's a big enough company to recognize it's in their best interest to stay on the right side of the law.

Recognize that if your insurance goes up you need to pay $x more into escrow.4.

Invest with syndicators who have a narrow niche and proven track record.For example, if an operator has done 5 or 6 workforce housing value add deals in Dallas, and they are offering a similar deal now, that would be encouraging.if however, their current deal was a brand new luxury Class A building in Charlotte and this was their first acquisition in Charlotte and their first class A deal, as an LP I would pass.Find operators who do one thing and kill it in that space.Find operators who own or have gone full cycle with similar assets in the same market.For example, my firm, Spark Investment Group has a very narrow niche - sub 100 unit MF or BTR in Greenville SC.

I recognize I still have a lot to learn and that having a track record would help. 

Recognize there are challenges doing BRRRRs since the rate increases that have occurred in the last couple years

As PMs, we're always open to feedback but we have, or should have, a proven process on how to manage properties.