I’ve read a bit about looking for budgeting for Cap Ex, vacancy, pest control, property manager (in case I don’t end up living in one of the units) taxes, checking to make sure zoning is right.

Don't be afraid of vacancy and finding new tenants.

Area has about a 3.2% vacancy.

Area has about a 3.2% vacancy.

Higher maintenance costs, higher vacancy, tenants not paying rent.

Area has about a 2.4% vacancy.

Anyways, I am looking at a 12 unit listing that has been on the market for close to months, and using list price to calculate cashflow on the property (using the BP calculator), it doesn't look good, though my assumption on vacancy rate and management may be high at 10% whereas the agent said vacancy is 3% in the area compared to the City average of 8%.

Also, when you calc'd your expenses, did you include things like repairs and vacancies and what not?

She has recommended us considering in-state investing, but we are nervous investing in CA given how renter-friendly it is.Our philosophies for starting now are 1) we want to achieve financial freedom/escape the 9-5p in our 40s by building a strong passive income real estate portfolio, 2) we want to start gaining experience now/we've only heard anyone's regret ever being that they wish they started sooner, and 3) we sense that if the math works, the math works (and not with rosy numbers, but with very realistic numbers with plenty of risk baked in like vacancy, maintenance cost emergency fund, etc)Thanks, really looking forward to some constructive feedback/conversation!

The numbers look good but I don’t see any allowance for vacancies, normal repairs/capex, turnover costs, etc.