For example, in C class neighborhoods, you might see higher tenant turnover and more wear and tear, which can increase costs over time.It’s also worth factoring in reserves for capital expenditures (CapEx), even if major items like roofs and HVAC systems are new.

...I think companies like Norada would advise an investor not to accept $15,000 in future expenditures."

Are there more capital expenditures coming?

They provide detailed information on the property address, closing costs, all utilities, lawn care, capital expenditures, maintenance, property taxes, insurance, and more.

The issue in most instances is the inability to articulate the risks and how these structures will actually help and therein lies the issue and why most go over the top on asset protection expenditures.

In each category, note how much you are bothered or stressed on a 1 to 5 scale, with 1 = not bothered at all and 5 = stressed out: Pain Points Stress1 to 5 Pain Points Stress1 to 5 Unit turnover Exterior maintenance Advertising for available units Deferred capital expenditures Tenant screening rules Plumbing or electrical emergencies Tenant selection / discrimination rules Mortgage payments Documenting move-in conditions Bookkeeping and bill paying Documenting ongoing conditions Taxes and insurance premiums Dealing with tenant complaints Risk of late payments or non-payments Dealing with neighbor complaints Risk of property damage or vandalism Mold, termites and rodents Premises liability Interior maintenance Evicting tenants If your completed table has mostly 1s and 2s, then congratulations—you are a happy landlord!

This implication is if a successful Brrrr results in no Money invested in the property and non negative cash flow when allocating for all expenditures, then price of acquisition is not relevant (because you acquired it at no financial cost).  

I refer to expenditures that return less than they cost as value subtract.How bad is the COC?

i will only buy if i have some way of keeping my overall expenditure low - for example, BRRRR. 

If CA splits into 2 states, which long has been a concerted effort to do and dang near happened most recently, oh-man S.Cal is in trouble because it's 80% expenditures and 20% revenues I have read.