As a result, investors often misuse this term and place more value in the P/E than is warranted.

But it's far too valuable a vehicle to abandon just because a few missed it individuals have misused this critical real estate consulting tool.In a shifting market, you will often need all the legal, sound, historically proven financing solutions at your disposal to get some tough transactions closed.As a real estate sales consultant, you are buyers and sellers expect you to educate them about all the financial options they might have to create the best win-win transaction possible.So, when the market shifts it's time to bring out the creative financial ideas and expand everyone's opportunities.....

Thinks like break-ins or them being careless (say, on the stairs or misusing the fireplace and burning the place down) would be what I'm most concerned about.

I don't give it to tenants, because of the high risk they will misuse it.

If someone accepts credit cards for their business, just remember that in the case of misuse by someone who pays remotely liability can fall on the business owner.  

This ratio: (Net Operating Income / Price) is the often misunderstood and misused CAPitalization Rate (CAP rate) you see bandied about BP.  

I would be concerned about water and mold issues due to misuse.

The problem with CAP rate is its misuse - Vendors will advertise rose-coloured cap rates to promote the sale of their buildings {no two of them calculated the same}; folks try to use it as a universal ratio to compare assets in different markets {i.e. a CAP rate of 5% on a multi-unit in Manhattan may be good, but a similar building a the same CAP in Milwaukee would be overpriced}.  

A board that is self managed frequently displays errors in judgement that a management company will catch.One other thing, know what you are buying, the term condo is misused. 

@Andy Mirza It may be normal and the easiest thing to do, but I never recommend to my clients that they use quitclaims for non-arms length transactions such as you describe.I have an ongoing situation in Texas right now where there are 3 lawyers (I'm one of them) trying to work out a mess caused by a quitclaim deed that would not even be an issue had the parties used a Special Warranty Deed 10 years back when one of the parties was trying to save a few bucks and used a quitclaim deed form they had in their files.In my opinion, quitclaim deeds are often misused.