The most critical component is going to be making sure you have strong rental income and ideally have a 1 DSCR ratio (rent fully covering the mortgage payment +HOA) 

@Robert Johnson - To me, replacing old sewer lines and infrastructure components (roof, electrical, plumbing, etc..) are the components that don't add a ton of value, but could certainly kill the cash flow / reserves on a deal.

If you are an investor who is looking for a secure, cash-flowing asset with a clear growth component, I'd be happy to connect.Thank you,Patrick

Another component to these unrealistic expectations have been poor policy, unnecessarily low % rates (+q.e. stimulus checks etc) So here's the thing...small biz, w9 people got smacked down by Dodd Frank.

That's the key component that is usually missing when I hear other entrepreneurs/investors say they don't like QBO.Something else to keep in mind is your entity structure and how your entities file tax returns.

Having this guy and his 1099 workers with no workers comp on your property was high risk. 

That 9% is made up of two components:👉 Cap Rate (your income return),👉 Appreciation (your equity growth),= Total Return (~9%)So if you're investing in a market like San Diego, where average cap rates are around 4%, that implies long-term appreciation of ~5%, bringing the total return to ~9%.But if you're investing in a city where the cap rate is 8%, that suggests the property is likely to appreciate just 1% per year, if at all.Why does this matter?

Many people think all tenants are good, there is good cash flow on turn key LTR leveraged purchases, there are no vacancies and associated tenant flips, that all components in a property last forever, that property tax and insurance cannot increase significantly.  

That's the key component that is usually missing when I hear other entrepreneurs/investors say they don't like QBO.Something else to keep in mind is your entity structure and how your entities file tax returns.

For the electrical component take total watts of bb heaters x hrs used ÷ by 1000 (conversion factor) that will give you kwh used.