I have read different things and some estimates vary greatly (swinging potential properties from good investments to poor).I live in Fresno, CA and will be purchasing my first rental in the area.Here is what I have estimated:Annual Property Management: 10% of gross collected incomeAnnual Vacancy Rate: 5-10% of gross collected income2017 -> rate was only 3% (7% was highest over 10yrs)Annual Release Fee: 50% of 1st month’s rent (not even sure what this is, but have seen it included)Annual Property Insurance: 0.8-1.2% of property purchase priceAnnual Maintenance: 5-15% of gross collected incomeAnnual Cap Ex Reserves: Approx $1,500 (aware it depends on the age of property/components)Annual Property Tax: Approx 1.2% Purchase PriceDo those numbers/percentages seem reasonable?  

The absolute biggest value add component that you can administer is adding bedrooms.

Check out Marshall Valuation Services and their online component cost estimators.

If luck is a major component, how do you repeat your success?

Lowering it you will basically have to rewrite the entire lease as the rent is a major component of it.

If you need major tax deductions to offset other income talk to your CPA about component or cost segregation depreciation.

We look at each unit and improvement on a case by case basis, but in general we try to go a little above low end and not so high end that it will cause extra maintenance, such as extra components that can break.  

Some components I'm trying to understand:    Do you typically set a specified return you try to meet?

The IRS will consider extensive repairs as components of an improvement project.In my opinion, filling in the pool is a major landscaping improvement not a repair

. :) The attorney leads didnt pan out, as stated above, but I just wanted some practice at the marketing component....'