That's why I posted, to provide people with real advice based on my experiences so they can avoid making the same mistakes.Providing greater buffer space for capital expenditures and controls is a good risk management strategy.

Perhaps the most important of which is that its more predictable and more CONTROLLABLE.

You might find that installing a mini-split system, properly insulating, and ensuring the finishes match the main home’s quality will make a difference in how the appraiser views it.

I suspect those guys grew to fast and it got out of control..

GRM and cap rate both looked great, but when we pulled utility records, we found heating costs in winter were brutal because of old, inefficient systems.

They have a system, team, and their own contracts, and also provide proof funds, even the EMD. 

For CY25 I realistically think we'll be somewhat in the black with about ~3-6% ROI/COC now that much of the initial rehab is settling down and we have our systems in place.  

Only thing you can control is price and making sure the home is prepped and shows well. 

The state doesn’t have rent control laws, but landlords are prohibited from collecting more than one month’s rent for security deposits.

The greatest control point is before that first lease.