@Jack Calhoun There are a few "rules of thumb" but ultimately, you'll need to do a full underwriting on a property before you actually put in an offer.I would suggest finding a good property analyzer spreadsheet and getting enough practice that you can quickly do an initial analysis within 30 mins or so.Some things to look for in a property analyzer: Allow for separate entry and exit cap-rateMin 5 year forecastinput for rent/expense growth on each yearincludes rehab and capex costsincludes debt service and financing costsincludes acquisition and disposition costsProvided IRR for planned exitHonestly, there's a ton more bells and whistles you could add, but I would consider that the baseline if you're talking about deals that size.Hope that helps!

This market is hard to build in and heavily regulated (rent control etc), and has a large population.

The primary residence regulations won't be an issue for you while you live there, and when you move out then you could change over to long-term tenants.

If this is a forum for medical doctors, I don’t think there would be somebody announcing “I have never gone to medical school, but I have decided to open my own practice.

If they can set it up by the book, follow all the regulations and are taking a personal stake in the condition of your rental - you just got yourself a free property manager.

., 1031 is a federal statute so it is practiced the same in all 50 states. 

You have teardown cost but that should be cheaper cost unless asbestos and county/city requires special demolition practices.

What are your best practices for accepting an applicant who has a credit report showing active collections? 

I'd love to hear everyone's practices in regards to managing multiple rentals when it comes to banking/accounting.

The lenders I've visited with have not wanted to do the loan because of Regulation Z.