Are you actually prepared to operate a business.

Owning and operating real estate will not qualify.

I handle most maintenance and we always have a renovation running.My grandparents ran much the same sort of operation in New York City many years ago.

Annual income is 70,320 with net operating at 53,171.

@Vlad Denisov if this is a live deal you have to follow the waterfall sequence as written in your operating agreement.

A financial adviser can help with the allocation of capital and alternatives but they can't help with "business" operations.

By analogy, this would be like having airplane passengers wear parachutes instead of focusing on what it takes to keep the plane in the air.I think a better way to protect your equity is to:Maintain the condition of your properties and operate fairly and ethically with constant regard to the lawPurchase insurance to cover any inadvertent negligence and/or simple bad luckVest title in a business entity that fits your partner, business, and tax strategyGood luck on your purchase.

Then we have to exclude Physical Vacancy and Economic Vacancy to get to our Gross Operating Income, right? 

Let's say we underwrite a deal and we think 3% growth  in Gross Operating Income and 2% growth in opEx are reasonable. 

The penny restores the circuit to operation but removes all circuit overload protection and is therefore a major safety hazard.