Other the repairs it looks like Property management is the biggest expense.

The hurdle has to do with payroll.

Biggest piece of advice I can give is to get multiple quotes on your homeowner's insurance.

I see from your response some of the issues I was expecting to be the biggest barriers to entry: capital and regulations/time to get approvals.

The biggest tool to track expenses is to have a credit card and bank account for the business and run everything through those accounts. 

Brian Burke: We've kept the waterfall structure the same.You can see here.We used in this case, We used in this case, we used an 8% preferred return, and then we had three waterfall hurdle tears.The investors got 70% to 12 60% to 15.And then after 15, they got 50 50.And we've essentially I've been using this waterfall almost since I started way back in the beginning.Every once in a while, we might alter something here or there because we feel the need to.But too many times I've done that and been completely wrong.We had a deal that we did about three years ago where when we underwrote the deal, I felt that we needed to juice thereturn a little bit more.And so we switched the waterfall to an 80 70 60 instead of 70 60 50.And at the end of the day, when we sold that property, we delivered to our investors like a 32% IRR.And now I'm kicking myself like we really didn't need to do that.We could have left it.Just as this waterfall is here, our investors would have got a 28 IRR or whatever and been thrilled to death.So I tend to leave the waterfall alone most of the time.

While someone may look good on paper, they may be the biggest PITA in person. 

My biggest concern is being priced out of the bay in 5-10 years since supply is only decreasing. 

I'm a younger investor at age 32, so this is appealing long term, but my biggest fear is it ever sitting empty in my lifetime. 

People smell dishonesty miles away.the biggest flaw when it comes to rei is that investors treat sellers as the enemy.