Your buyer won't be sophisticated enough to understand the risk, and won't even bring this up. 

Property management, repairs and maintenance, payroll for a property, etc.- is property tax included?

Note, while Rule 506(b) allows for sophisticated investors to invest in a particular deal, these investors must have pre-existing relationships with a deal sponsor prior to investing with them!

And lets say your annual payroll is $200,000.

.” – PwC 2019 Emerging Trends“The sharing economy (…) has increased access to information, and growing sophistication of the customer has made it harder to provide one-size-fits-all hotel concepts.” – MIT Center for Real Estate: Real TrendsCo-Working is Expected to Lead the Office Market“The strength of the co-working market is not to be underestimated.” – PwC 2019 Emerging TrendsOffices are starting to reduce their footprint as, “A substantial amount of space in conventional office layouts is not used at any point in time: Meeting spaces are not always booked; workers take vacations and fall sick; 9-to-5 workspaces remain unoccupied after hours; and employees with assigned desks spend time off-site talking to clients or performing services.”- MIT Center for Real Estate: Real Trends“Compared to 6 months ago, the forecast for office vacancy rates is unchanged for both ‘18 and ‘19, but less optimistic for ’20.

Nothing sophisticated, but good fundamentals. e.g. he explained CapEx to me, but never knew it was called that. 

a) Office Supplies (e.g. stamps, envelopes)   b) Software   c) Gas/Mileage   d) Advertising + Payroll   e) Concessions   f) Lease loss   g) Lease renewal fees12) Lawyer/Law office/Legal fees13) Accounting/Bookkeeping/CPA/Tax preparer/Tax advisor

Sophisticated investor means sophisticated. 

A sophisticated lawyer should be able to help with known method.

As I'm entering this amazingly sophisticated, yet simple journey of REI, the best strategy I've come up with my lender is the following: refinance my parent's primary home (will get about 100k back), fix it up with some of the refi money (rough estimate of about 30k, but I've never rehabbed before so its a really rough estimate), Rent out the primary SFR, use the rest on a downpayment for another home that I would like to BRRRR and place my family (we are 4) in a multifamily house with separate units (with one other family member in another unit).