For example, doors should be inspected on both sides, the spine (most common area to split from being kicked in) and the frame.

@Nickolas Burns everything you described is common in properties of this age in Sioux Falls.

Either or works Well just use this as a simple example 24 Unit apartment Complex ( B-  or C +  type  property Purchase Price - 1,920,000 ( $80k Per Unit ) may be low in this market Down payment - 25% = $480,000 Rehab - $ 6,500 per Unit ( some units  more than others ) = $ 156,000Common Rehab - Water Heater , laundry room if it has one , Paint of building , landscaping , windows , parking lot  , roof ( 10k - 70k ) This ranges a lot depending on the property Closing cost - 20-30k tax - 7,000 / year insurance - 12,000 ( wind n hail , general , fire  ) / per year Property Management ( 10 % ) = 2,160 / per month vacancy - 10 % = $ 2,160 per month Cap X ( fridge , window , curtains , doors , paint , roof , pavement ) - 1,080 / per month Landscaping - $ 800 per month simple repairs - $ 500 -900 per month common area electric - $ 300 per month Mortgage $ 7,500 ( 30 year amortization  , 4.75 % rate  ) Income - $900 per unit = $21,600 , this varies based on area . 

Those are simple 2 common ones.

I have found the cash flow from laundromats to far outperform that of most real estate investments pound for pound, especially in your area. 25-35% unleveraged is pretty common.

Yet the common flu we all know has taken countless thousands of lives !

For example, they purchase a warranty for their property that covers common repairs with a $50 deductible.

I think somewhere around 1 months rent is common. 

I would advise you to consult your tax professional as we do not know your individual tax situation, nor what caused your initial interest in QOFs.To answer your question sincerely (with a common answer in the tax and accounting world), "it depends".

That is the common legal definition, all depends on your language and model waterfall.