The property is a 5 unit building with the following information: Rental income is $4,000 per month or $48,000 per year totalTaxes are $375 per month or $4,500 per year (this is higher than current but factoring in that they will increase)Estimated insurance is $200 per month or $2,400 per yearExpenses: Vacancy 8%Management 10%Other expenses Landlord pays water at $400 per month or $4,800 per year Realize this could be a cost savings in the future, but want to analyze as isGeneral maintenance (including minor repairs on property) including grass and pest control estimate at $300 per month or $3,600 per yearCapital reserves for Cap ex (appliances, windows (52 windows on building), roof, siding, etc. which I based on building a capitalization table based on useful life of items and number of units) at $460 per month or $5,520 per yearLoan: All in after down payment the loan would be for $300,000Assuming 7% interest rateAmortized over 20 yearsThus comes out to $2,325 per month or $27,900 per yearSummary Income Per Year:$48,000Property Exp.

Know how to run numbers and be able to identify specific risk factors of any property!

Many investors hire experienced contractors to do the work and this is factored into the overall expense budget.2.

In addition to sites like this Ive found that driving the areas personally is the best bet to really get a sense of area. 

I normally listen on my drive to work @ 1.5x speed but started it again regular speed just to take notes. 

Spent a lot of time driving around and checking out neighborhoods.

I would look up the city's development site and see where new development or public dollars are going.Once you get that info, find about 10 neighborhoods, go out and drive them and reduce the number down to about 2-4.

The needs of real estate investors are very different from the needs of "normal" insurance clients who just live in a house they own, and drive a few cars.PLEASE, for your sake and the local market as a whole, only work with insurance professionals who can demonstrate a deep and thorough understanding of your needs as a real estate investor. 

But, I do use a large HELOC on the property to fund flips, so I do get some benefit from that equity that's not factored into that return.

Once the constable drives away all bets are off.