If you’re using leverage, be extra cautious with your underwriting to ensure the deal still works at today’s rates.Economic Uncertainty: Inflation, potential recessions, or shifts in demand could affect rents, vacancy rates, and property values in some markets.Increased Operating Costs: Rising insurance premiums, property taxes, and maintenance costs can cut into profit margins, particularly for buy-and-hold investments.Regulatory Risks: Some areas are increasing restrictions on landlords, particularly short-term rentals.

Gita,At least the way I prefer to do things is to only run accrual based accounting activity on my day to day operations.

So this is not something new, I've used Flat Fee agency before and I know how these guys are working.It' small shop operation, 3-6 guys, with 1 TC.

More than likely the asset will in a location where cap ex & management/operational costs are disproportionately higher and therefore your expense ratio will also have to be adjusted to a higher number.  

Over time, rents may increase, improving your cash flow, and you’ll gain equity and valuable experience managing tenants and property operations.

It works just fine if the operator knows what theyre doing and structures it correctly.

On a commercial asset the value is directly based on the NOI (net operating income).

Are you doing the work yourself or what is your plan on tackling the operations? 

I just mean to say that I don't think there is anything wrong with their business plan, their operational expertise, and so on, so unless something melts the economy down, it seems as though Brian integrity of the operators is the only remaining variable. 

If so, you'll need to figure out why you're not making money - is it other operating inefficiencies or your debt terms?