Long term landlords benefit from a very conservative analysis of rental properties because conservative investing protects profits across the unknown.

Looks like Rams for Inglewood and another unknown for downtown LA.

I've been pondering some out-of-state turnkeys, and am looking for some way to understand unknown neighborhoods from a distance.   

@James Clayton I think you just found an expert on it, and he's telling you basically Not to do it, unless you're willing to carry it through a default by your buyer, and have the funds to handle a Due On Sale situation since you'll be doing not one, but two, title transfers.Otherwise, you're essentially walking into a double sided deal where, with the seller you're saying "I'm going to screw you if my unknown buyer screws me" and to the buyer "I'm going to screw you if the bank discovers what I did, and calls the loan".

There are too many unknowns that can affect my outcome if I hedge on ARV.  

That does not mean he has discovered anything previously unknown to the rest of world.

It's my opinion that your first property shouldn't have major unknowns.

Should I do a percentage of an unknown profit or make it a guaranteed $20,000 on the back end?

Once you have the property map in sight check for 'unknown areas'.

Predominantly because of unknown EPA issues, from the drycleaning operation.