Logan:  Yes, the rent covered my PITI as well as 5% for vacancy, 5% for maintenance and 5% for cap ex. 

Reasin being is that usually lenders will cap at 75% LTV for a cash out refi. 

At end of year, they true up.What I would be negotiating is both a lower monthly CAM (why give landlord an interest free loan) AND a cap on what you will pay in any given year or for what.  

If the lease is up (or coming up for renewal) and you've given them proper notice and are following the local rules (eg if there is a cap on rent increases); tell them they are free to give 30 days' notice and find another place.

They will look at sales comps for similar properties and the price per sq', they will look at the replacement cost of the property, and they will evaluate the property based on the NOI and Cap Rate. 

When you rent, maintenance/cap ex, insurance, pm, vacancy, misc are included in the rent. 

The CAP rates aren't great, the vacancy rates are high, majority of multi-family locations are in areas with unreliable tenants.Overall, it just seems like it's difficult to achieve reliable passive income here. 

Is it true when underwriting small storage facilities that you should use a high cap rate between 12% - 15%?

To assess the property's financial performance, key metrics such as Gross Rental Yield, Net Operating Income (NOI), Cap Rate, and Cash-on-Cash Return are calculated.

Also, cap rates are so low it's impossible to BRRRR.I have a big advantage in LA area because I have a contractor partner who can build at cost, however, I am wondering if there is any interesting markets 1-2 hours from Los Angeles that can be more realistic to start.Would love to start with a project under 1M.