Key factor is - what is it actually worth to YOU and YOUR DEAL.If you can't get it for the price you require - then pass on it and find another.

Over-financing can be an issue when too much money is borrowed (the interest rate and length of the mortgage are factors).Warren Buffett refers to free cashflow as owner earnings, which is money you can safely take out of the business without jeopardizing the business.

By the way - our group is hosting a buy and hold workshop Saturday the 16th in the morning - featuring Andrew Syrios - (you will find him here in BP) he will be teaching live at KCRAR - see the event section for more details and how to get registered.

All this to say that HIGH OCCUPANCY at the end of the day is BY FAR the most important factor in this business.

Usually schools and crime... walkability comes in to play in some areas (usually more urban,) but local conveniences certainly can be a factor.

I don't know, but from my basic knowledge, make sure you are pumping up the vacancy factor to account for the summer months being potentially vacant.

Combine some of those factors with congress attempting to make collection law even more consumer friendly, and the rise of frivolous collection lawsuits, and you have an eventual recipe for a bubble bursting.

Do your math and plan for the worst case scenario when factoring in your expenses.

Thanks Unit count and occupancy status are both interest rate factors, yes.Fannie Mae publishes her pricing adjustments publicly. 

If it's a multi unit building (5+) usually the occupancy factor should be at least 80%.