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

I would factor in time to travel to any market, but AZ is relatively quick compared to the east coast. 

@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. 

All of these factors/considerations impact each other to some extent and its impossible to know whats possible until everyone in the group is clear on what they need/want this to look like.Either it sounds like you're on the right path with the line of questioning. 

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.

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.

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.