I think the energy efficiency factor is minimal.

The 50% rule include management fees, so get rid of the .91 factor. I

I find these homes all the time, rip the siding off and stucco the home.I do also agree that the most important factor is the curb appeal which would mean changing the old wood frame or metal frame windows, in doing so, you will have to stucco the home anyways unless you use retrofit pop-ins which I do not recommend, and all the other things mentioned - landscaping, nice looking color combinations, etc.So, is stucco convenient?

Do you know what profit factor is?

Statistics show that tenants use up to 40% more water when they do not pay for it.Your options are usually to:1.Have the total rent include water,sewer,and trash.2.Sub meter out the units from the water company if they allow it3.Prorate the amount of water usage for the building an bill each tenant.4.Have a company bill them instead of you.5.Have a private company install meters which is cheaper and they bill the tenant for what they use.This avenue you are still responsible to pay the water to the city/county even if you bill the tenant and they do not pay.On lower income housing I see about 60 to 65% pay their water you bill them for every month and the rest you have to chase for the money.You have to pay the water company regardless.The other factor is tenants will let friends was cars with the outside spigot,take showers,do their laundry,etc. and the tenants will also usually not report leaks or drippy faucets as they do not pay for the water.Another thing to look out for is what does the city/county charge for water and sewer rates.If you research a county you might find they have upped the water rates by 50% in the last 6 years.So one county using 1,000 gallons costs you 100 and in another county it costs you 56.You have to really look at how old the water and sewer system is for the city/county etc. and look at all the costs.I can tell you water is the talk of the town with buyers of multifamily.It can just crush your bottom line.

This is not a hobby or past time, this is a business.Just like when I buy stock, I don't visit the factory or office, I just look at the numbers.

Another big factor is that I'm looking for a long term hold (10-15+).

From what you're saying, seems like the deciding factor is who is running the activity and not who is on the mortgage?

You can't 1031 exchange real estate for factory machinery or a truck.

There are still a lot of term sheet factories who will spit out bogus terms with no real interest in actually funding a loan.