.- Cost of Capital: when you compare your deal against WACC, this is return rate of your equity within an individual deal, after factoring out the payback of all debts and equity partners- Opportunity Cost: when you compare your deal against the opportunity cost of similar deals or any other investment you could potentially make, this tells you whether or not it makes sense from a pure return perspective to invest in one type of asset or another.Super basic example below where you buy a 10% return property, and take out a 4% loan at 60% LTV and gather equity for a portion of the remainder 25% of value @ 8% and then comparing the return of your equity against inflation and an opportunity cost investment such as the stock market returning 7%:Note that you compare the rf or inflation and the opportunity cost against your personal equity contribution. 

Still have to account for appliances and hot water heater 12 years,hvac 20 year, bath and kitchen remodel 20 years,etc.

Prop. 15 though seems quite necessary to me although maybe also not the best solution.The state has two related problems that need to be solved:1) California has developed unsustainably for decades (often through federal government largesse), overbuilding public infrastructure such as highways and sewer/water lines.

I would like to get pure cash flow of at least $100 per home.

Properties on or near the water (TN has gorgeous lakes & rivers) are hot as people edge away from big city & Draconian Covid restrictive lifestyle.

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Have you thought about selling and buying a pure investment property that will cash-flow?

The house had a water leak and is in bad shape.

I hope you're good at snaking drains, fixing electrical, fixing water leaks, etc...at 4am and on Holidays (don't make family plans). 

Question for my lender friends, how do I get a HUD waiver that permits the septic tank to be "only" 76 feet from another water source?