I also think that using an abundance of caution could potentially discourage someone who is looking around for a good candidate to sue.Another big factor is probably the size of your operation/ investments.

Layer in additional costs and you are looking at 7-10% costs before operating.

I requested contact information for the Pizza Hut  operator, and my email requests  for said contact info were evaded.

I know some landlords don't want to have anything to do with their tenants, but we don't operate that way. 

Does the 50% rule include only operating expense, or does it also include debt coverage and taxes as well?

If you actively participate in your passive businesses (actively participating in a passive business is different than operating an active-income business), however, you can deduct up to $25k in passive losses per year against your other income, provided that you don't exceed the income threshold.

But until that point you have to just grind it out as a sole operator doing what your doing.

(I plan to keep all deposits, and operating funds separate from my personal accounts and in their own respective accounts.)When setting up new bank accounts, is there a benefit to using a bank local to the market you're investing in? 

From the formula, we know that cap rate starts with NOI (i.e. revenues minus all operating expenses).

Umbrella insurance is much cheaper.One last thing is if you operate thru S Corps and LLC's when you get insurance, make sure to get an endorsement covering you personally as well.