This makes the actual rent 10-20% smaller ord) not all units are rented and the owner forgot to mention this.II) incorrect units:a) some of the units are in immaculate conditions - they are usually shown to the investor for inspection but 90% of the units require major fixesb) converted non-permitted units: those come in two flavors: units that were illegally added and units that have been illegally modified on the inside, e.g.: illegal unit addition or creating an attic or a basement unit for the first one and converting a large 1Bd1Ba to a small 2Bd1Ba or even converting 2Bd2Ba to 3Bd2Ba.

Keep in mind that theses sorts of sales have a local flavor to them, so those of us not local to that area might not be quite accurate enough ...

If you invest for appreciation and you are right, you get BOTH appreciation AND cash flow because price increases and rent increases go hand in hand while most expenses do not scale up as such.... and now, the caveats:There are 2 "flavors" of appreciation: forced appreciation (which you control) and market appreciation (which you don't control but can screen for neighborhoods with high appreciation potential.

In less vibrant markets, Midwest/Rust Belt, you will see higher CoC returns but lower capital gains potential. 

I imagine its quite a bit different than Baltimore City which is quite vibrant depending on the area. 

@Daryl CocozzoWelcome aboard the vibrant BP community.

I'd like to see us develop a list of good questions that we could use to weed out trouble makers, yet still help us maintain a vibrant community of diversity.

Basically any high income employees that wanted the breathing room of the suburbs/mixed-use with vibrant commercial activity and didn't mind the 30-40 min commute into downtown SF would live in Walnut Creek or Pleasant HIll.

There's a whole science to encouraging vibrant, sustainable communities, and turning MFRs into mini-hotels ...

But as I said, that's me, my "flavor" of things and all that matters is what's yours.