As for the folks operating in the darkness and illusion: they can either know they are producing suffering for themselves and others and come to a rationalization as to why it is ok, or they can delude themselves in the same way they delude others into thinking that they are offering actual value.

For example, taxes are only deductible for the part of the year you own the property, so you have to adjust for tax pro-rations, and you cannot deduct any back taxes.

However, I'd encourage you to take perspective of the investors as well - it's hard to rationalize that PM fees should add up to 15% while investors' return is only 6% - particularly since there are examples where we have more competitive structure in more expensive market like CA.

What you gave me was a rationalization based on hope, and future events you didn't mention, but you have no control over.6 - Ok...but how, where?

Fees, pro rations, cost not accounted fir, appraisal, title insurance.

I get the impersonal approach because it would make things a lot easier to rationalize, but I don't live in a bubble, and my goals are to live happily ever after.

At 45% expense ration you're at -47 cash flowmake sure when you're doing your anaylsis you are accounting for future vacancy and property management, maintenance, and capital expenses. with FHA 3.5% down you're going to have PMI as well which I did not account for.

ROI is assumed but whats the rational behind your choice? 

We have chosen to ration our capital and be more selective with project selection instead of leveraging more and using hard money for our projects.

Obviously not willing to rationalize a bad number by underestimating expenses, just trying to get more creative here.