$1600/12/10= $13.33.In addition, using a percentage for maintenance/cap ex is a terrible methodology. 

I would recommend a serious methodology.

I feel like our methodology has almost shielded us. 

For now, as the two properties are too small to refi, I will sell them and buy larger properties with financing using the same methodology as you did on your first two.

You will get more to depreciate, and it is the IRS' preferred methodology.

The study should identify the preparer and have reference to their credentials, expertise and experience.Detailed description of the methodologyHere is an article explaining the different methodologies utilized in a study.

@Nicholas Coulter - Thanks for the feedback@Ruchit Patel - Yes, my goals are to BRRRR and am looking mostly out-of-state since Utah isn't the most affordable locationMy follow up question would be what is the common methodology for establishing that solid scope of work when investing out of state? 

Otherwise you can take the average water bill and include that amount on top of your anticipated rent and advertise that water is included in the rent up to that predetermined amount.Thanks Daniel - I had to look up recoupment structures and billing methodologies (RUBS) system, but that looks like a good option too.

An engineering-based study is the IRS' preferred methodology and not something CPAs do themselves.

Typical Valuation Methodology for Commercial Real Estate:  Market Rents minus Operation Expenses = Net Operation Income (NOI).