The current 3/3 rental is in an up and coming area and I am also hoping for a little appreciation in the next 3-5 years so I can perform a 1031 Exchange into a larger apartment complex.  

., it may be a personal lifestyle decision but that's precisely why the government gives a tax incentive.

To be more precise I'm looking in the South Bay.

I plan to keep it for 3-5 years while renting out then sell it then buy bigger via 1031 exchange.

I just closed on a 300-unit recently precisely because of the facts you cited in this report.I buy houses too but only to re-sell them but multi's are where I build my cashflow and long term wealth.

They typically want a relationship with you so they will give you better rates in exchange for moving money there.Good luck!

This is just a simple example and other features can become even more difficult to determine so what are some of  the best ways to figure out the numbers in order to be as precise as possible?

Im currently in an apartment and planing to purchase a duplex as my first investment (live in one unit and rent out the other) so I’m a bit more precise as far as area because I will be living there too.

Maybe you're willing to take a lower cash flow in exchange for higher appreciation? 

The HVAC was bad and the inspection did not discover the cracked heat exchanger.