He has never been late & took in a room mate to help with expenses.

Some people consider last year's actuals to cover the expenses and forget about vacancy allowance, expense percentage, CAPEX, etc.

If there are additional expenses they need to be taken into consideration such as if you are paying for water/sewer, gas or oil, trash, plowing or lawn care, HOA fees if there are any, CapEx, maintenance, vacancy, mortgage, taxes.

We did most of the renovation ourselves, but there were few things we contracted out which were more expensive than we imagined.

I am aware that Southern California in general is expensive and positive cash flow appears non-existent.

ShrinkflationThere is inflation and now we have “shrinkflation,” where something appears to not be as expensive / the same price but the size of the offering is now smaller/less.

Run a Worse Case Scenario.( Get some solid numbers from a property manager).Multiply monthly expenses by the number of months that it takes to get an eviction. 

Doesn’t make the expense hurt any less, but feel slightly better about the PM partnership. 

The zoning maps may show that you can build but the geology would make it to expensive for someone to actually build with out losing money. 

Now that we've closed I'm adjusting to having 3 mortgages and managing the operations/expenses... baby steps.