It is cheaper to rent than own in the initial years.Retail purchases in San Diego that do not have a value add are cash flow negative when allocating for all expenses.If you believe that owning will reduce costs in the initial years then you do not have a good understanding of the expenses. 

Limit Research Time: Allocate a specific amount of time for research and analysis.

That way the City doesn't get involved with allocation disputes, etc.

You will also need to consider the amount of time you have to allocate to management.

Then yes.If you use the same truck for personal purposes, then you have to properly allocate the expense as the truck is used for business and personal purposes.

Lastly, I did not see you have any money allocated towards stabalization costs.

I would allocate a high vacancy factor in your evaluation. 

First at that rent ratio my conservative pro forma that allocates more for maintenance and cap ex than those suggesting a different market (meaning a conservative pro forma) would show that as cash flow positive with a conventional 30 year at 80% LTV.Second, the ADU regulations allow, for the next 5 years, converting an existing non permitted unit to ADU/JADU by only addressing heath and safety codes.  

Hey BiggerPockets Community, I'm investing in my hometown of Birmingham Al. Does anyone have a good recommendation for local lenders (credit union, community or smaller regional bank) that they've worked with for fina...

You should at least be on QuickBooks and allocating expenses.