for someone whos only goal is to own rental houses and do nothing else.. then I guess that works.. but true equity is an important component when going to the next level.. 

With all that said,  there is a key component that is important for me.

Airbnb's social media component and verification system really helps with vetting tenants.

A property profile has at least four components, as listed below.Location - The locations where significant percentages of the target segment are renting today.Property type - What type of properties are they renting today?

But joining a good Mentor and Networking group can be advantageous if you are missing any of the needed components. 

@Michael VanThere is o e key missing component to this question, which is the risk factor to achieve those returns.

Everyone is going to have a different definition of finishing materials, but I'm generally referring to:- Appliances- Light Fixtures- Plumbing Fixtures- Flooring (Carpet, Tile, Wood)- Cabinets- CountertopsThe things I generally consider building materials, and ask my contractors to provide, include:- Lumber- Plywood- Siding- Roofing- Gutters- Paint- Rough electrical components- Rough plumbing components- HVAC components- Fasteners- Trim (Sometimes I'll provide this)- ConcreteI know some people categorize differently, but that's how I do it.

An inefficient capital market will provide greater returns, but there is generally a risk component to go with it. 

There's always a lot of 1s and 0s, but there can be an emotional component.

Capex budget for the roof is $233.33 per year).Financing - An often overlooked component to a property evaluation is the financing.