. #1 is the primary reason, but #2 does factor in as well.

I would factor in 6-10% for property management.i have worked in property management for 3 years before and through the pandemic, and I have been seriously searching for property to invest in for about two years.

@John BerjIf cash flow is a top priority, factor in HOA fees (common with new builds) and confirm rent comps to ensure the numbers work.

I’m talking about getting thorough with expense estimates, factoring in property taxes, insurance, and a cushion for maintenance.

This is bad math, once most people factor in their income tax bracket. 

The only thing that I see missing if they are purchasing with hard money debt they may want to factor in 3% - 5% for closing costs (points, fees, title, etc) Thx Zachary!

The biggest factor is thoroughly review their credit score report especially on time payment record and score.

Those that use PM's have pointed out that there is a cost factor of also having to manage your PM as well - following up behind them, making sure they are doing what they are supposed to be doing, etc.Hope it helps!

When things outside of our control as investors change, (macro-economic factors, saturation, disposable income etc.) and there is no safety net, that's when investors can get really hurt.

I'm sure that factored in to the government trying to find a way to gain ownership of the land and the only solution appeared to be a land swap.