The billing model incentives are counter to the best interest of the property owner; There is a financial incentive for property managers to churn units rather than address tenant problems.Most of the "professionally managed" properties I look at to buy are not nearly as well maintained as owner operated buildings and the work is shoddy.

Lenders with the better rates are churning through loan files a mile a minute.

The result is that my smaller buildings have much less churn/turnover (basically zero vacancy), have appreciated a lot faster, and have been much easier/less expensive to manage.

You'll need to churn through a bunch of tenants before you find the right one.

Here is a short list of unexpected costs that can reduce CF, or easily eliminate it altogether for years especially if the margins are thin and the property only kicks off a few hundred/mo (all of these are actual issues I've dealt with in the past few years that effected CF):  Annual Backflow Prevention Assembly Tests/Code changes requiring additional backflow prevention devices“Churn”: high vacancy and turnover rate/ tenant drama/ evictions/ turnover expensesBad PMBad tenantsHOA fee increases/special assessments (condo/townhomes especially but also MF/commercial complexes)Trash hauling/property cleanup—ghetto properties are trash magnetsCrimeTheftTenant DeathMileageToolsTenant placement: screening charges, advertising, professional photos, travel, 3D tours, etc.Property tax increase based on sales price you just paidInsurance rate increase based on a claim you made or a high number of claims in the area Trees-- maintaining trees costs more money than many people realizeAnnual Sewer ScopeAttorney feesTravel costsPest Control—We recently had the unexpected pleasure of evicting some bed bugs from a newly acquired 8 unit building.

I don’t know anyone who would pay any number they churn out.The best ways to get an estimate on the property value are by comps and appraisals.

If I were to flip it would be a C,D areas fix it up and get the hell out ,the future is risky I would not want that to add to my risk formula .Then the churn is back on looking for the next target quick before the clock expires from the 1031 limits .Owning rentals in A ,B areas that will go up in value i.e passive income, future looks bright .Less stress with rentals fixed up right ,right location .

Long story short, it was a 1 year intense project management rehab, then 2 years of churning retail tenants What was the outcome?

The business has to churn out amazing numbers to pencil for profitability and either the tenant will leave, want to renegotiate the rent, or sublease.I look at rents per sq ft, cap rates historically, mortgage interest rates, etc. 

You'd be surprised at what you can accomplish when persistence meets flattery. and continue to search for other deals and put as many low offers as you can. never get too caught up on one deal even if it's an awesome one. there's always another one. continue to churn out offers and you'll get the right one.