Issue is, almost every single property I underwrite seems to have pretty mediocre projected returns: ~0-4% COC, 8-15% IRR over 10 yrs, at best.

Historically used online software without much issue.Now that I'm looking at the settlement statements from 2004 and looking at a sizeable depreciation recapture hit, I came across a number of questions / issues:1) I believe in 2010 I incorrectly set my basis (I did not include the parking space and upgrades to the units - granite, flooring, etc.).

On one hand I like that it will probably cash flow (we expected to break even at best) and know there's issues with canceling reservations.

@Olecia Williams I am local here in Florida and help clients all the time purchase second homes that they short term rent with 10% down with zero issues.

I agree with the other comment, you unfortunately do not get that money back even if the seller was not upfront on an issue. 

I assume he does, and with this partnership tax return he issues Forms K1 to you and your partners.

I heard that one of the new laws that went into effect 1/1/25 in CA requires landlords give tenants photos of any areas/issues that were a cause for security deposit deductions.Thanks in advance for any input !

But if you have a low LTV, it's not likely an issue anyway.

Is the state a fan of those who manage in this manner, not so much, but a good reply is why they don't take issue with the countless employed non-licensed managers at apartment communities all over?

I use a property manager and never have issues getting the houses rented or the tenants to pay on time.