I really don't understand what my broker is so concerned about. 

Overall I’m more concerned with cash flow and returns than a cap rate but I want to make sure Im creating an accurate and somewhat conservative scenario.

However, it is an extremely important cost to account for.5.  

But he may be right as well. you should have gotten multiple bids before you started the project. that would have addressed your concerns regarding overpaying.

Also in LA renting is extremely expensive.

It's extremely important that you understand your documents in the event of a default and the standard language in a boiler plate note and mortgage is structured primarily for consumers, not investors.

Secondly, he went on to mention it cost him $300 to heat 2 rooms for one month over this winter, his concern was the insulation.

Hello, first time poster and would appreciate some feedback on a few areas of concern as I look to expand my buy and hold portfolio. 

My concern is that what if the existing shareholders don't want to sell the shares, then, will they become a partner in the deal or just continue owning the shares equivalent to the apt sq ?

Francis James Gillies it’s your money and your time, but I can save you both and say that mailers have an extremely poor response rate here in Orange County.