I've listed the criteria from the analysis I used from Policygenious (and here's the full article:https://www.policygenius.com/homeowners-insurance/best-and-w...)Drought is the biggest concern for AZ, along with high heat.

Assets identified in this study include:Bathroom Fixtures: Bathtubs, vanities, showers and toiletsStructural Components: Drywall, wood framing and interior partitionsBuilding systems: water heater, electrical distribution, HVAC, plumbingInterior Construction: Wood flooring, stairs, ceramic tileSmoke detectorsThis engineering-based cost segregation study included the following methodology:Physical Inspection through a site visitDocumentation review including architectural plans, accounting records and construction documentsA cost analysis which utilizes engineering principles in order to allocate costs to their applicable asset classificationsCalculation of the depreciation schedule using MACRSAs a reminder, bonus depreciation started to phase out in 2023.

Markets with balanced property prices and strong rental demand will be key.While rising prices and interest rates may impact cash flow, with careful deal analysis and a focus on areas with good appreciation potential, it's achievable.

- **Market Analysis**: Gather data on the local market, including comparable sales, average days on the market, and trends.

Accurate market analysis and conservative estimates are key.Underestimating Rehab Costs:Rehab costs can quickly add up.

Professional property managers are skilled in market analysis and can help set rental rates that attract tenants while maximizing profitability.Tenant Retention: Good tenants are a property owner's greatest asset.

Post one of your deal analysis.  

Hi all - I'm struggling with what the best type of analysis to use to come up with to compare investment options and wondering if anyone could help me focus on the right metrics.I am trying to make a decision on build on an existing piece of land that I have or to buy a completely different deal.Details:- Currently own/operate a triplex that cash flows very well.

Additionally, ARVs in these areas have a cloud of uncertainty so it will be prudent to be conservative in your analysis and have multiple exit strategies in place.If the home is located in an area with minimal impact from the storms, there has been a small uptick in pending sales the past two weeks compared to same period prior to the storms.

If there's a hole, it may be a red flag.b) sensitivity analysis: I examine all the assumptions, and make sure I can live with the worst case scenarios.c) "Stall and see": if they are getting money over multiple years, and there is no penalty for investing later, I would usually wait so I get some real performance data, versus having to look at theoretical pro forma information.d) Recession stress test: I will not invest in anything, until I subject it to recession level stress and see if I can live with the result.