Hi Adam, Is the school fee to build ADU that you mention a one time fee or annual fee ?

This is why IRR is typically used to show the return of the project while accounting for the time it takes to actually receive that return.I would ask for the Syndicator to show you the projected annual returns year over year for a hypothetical investment of $100,000, they should be able to provide that information for you as it will already be in their underwriting. 

What are the annual property tax and insurance costs?

You will need to make sure weekly, monthly, quarterly and annuals goals are met, vacancy is kept to a minimum by either increasing your renewal rate or always marketing, keeping a tight watch on all R&M/capex as well as managing your cash position. 

Im with a great company and they offer me the flexibility to pursue this goal in RE as well.I also love what were doing with RE, my point was not to overlook the smaller deals (the ones Im buying are solid working-class housing where I can net over 10k+ annually on these properties).

In Portlandia were are see price concession and or free rent etc on some of the new build real high end 2500 dollar elevator buildings on the east side.. this is happening now.form what a friend of mine who owns a management company with 6k plus doors was telling me at lunch.a few buildings are stressed right now.take this scenario.. you buy the land 3 to 5 years ago it takes at LEAST 2 years to get through permitting then another year to build.. cost of building in this time has gone up 10% or more.. land is static .. and your proforma show this ever increasing rent.. you now come on market and your 4 story elevator building now cost you 400 a foot to build.so your in a new apartment 400k.. you need 2,500 a month just to hit your investor grade 4 to 5 cap.. and now rents start to pull back as they are or lease up is very slow at those values.. so you have full amount of debt on the building and of course everyone these days has max debt.. so debt service and DCR ratios start to go out of wac  you have annual reporting and loan covenants .. you no longer meet your covenants and you have a cash call to your lender  along with negative cash flow.. this is what I mean by some are stressed..

What are the average annual fees to maintain the license?

I know that there may not be a science for this but I thought wouldn't hurt to ask the question:  Just for initial planning purposes is there a way to come up with a swag at annual capex number for a class B apartment as a ratio related to its NOI, price, on-going maintenance costs, or some other parameter, way before you go on with a full due diligence?

With mortgage rates at 4% and the opportunity value of cash a realistic 10% you are losing 6% annually on your cash not increasing cash flow.

The state makes up for it in taxing properties at 2.25% - 3.5% of appraised value annually.