you said "rent covers mortgage." you need it to be significantly higher than the mortgage to cover all the expenses you are going to incur.hope this helps...

- If so, 1031 into something bigger and easier to manage and then when you pass, the inheritor receives your property(s) at a stepped up basis - subject to Inheritance Tax limits.Otherwise, sell one every 1-5 years when you need the cash, so you can plan expenses to offset capital gains.

Property values continue to grow in value, and you can actually live off the rental income.I think it's best to hav all properties paid off by retirement age, since that's when you are going to rely on cash flow for your living expenses.

Finally the pro formas that they provide are absurdly basic and neglect at least 25% expenses, so are essentially useless. 

I know a cost segregation study would be too expensive for such a small amount of property, but is it permissible for me to estimate the value of the components on my own?

And this is your best chance of house hacking while covering most of your living expense or maybe even cashflow if you buy in the right area.Hope this helps!

For the most part, due to interest rates, breaking the 1% cap rate still won't provide positive return after expenses.

The major pieces of information you are missing include NOI which includes deducting all of your operating expenses from your gross rents sans debt service, market dynamics (what are vacancy rates and asking rents like in the market the building is located in?)

., with the rapid rise of STRs, you will find that many insurers offer STR policies.We use Proper but it is very expensive but very comprehensive.

So my limited experience with a new build did not yield cap ex expenses with what you are proposing.