Your numbers are lower than what I would use and probably unrealistic. 10% is the norm for maintenance, vacancy, and CapEx.

If you don't fully understand the answers to those questions, then you have unrealistic return expectations. 

I would also question that quote as it seems unrealistic for 10% down on a 2nd home. 

But if prices in L.A. make that unrealistic, buying out of state in a more affordable, cash-flowing market can be a great alternative.

They invested in declining businesses with unrealistic returns. 

There are many sponsors groups - like this - that had large audiences & influence for $ capital raises but when it came to business plan execution have some combination of:  1) poor debt structures / very high leverage, 2) Unrealistic/aspirational Underwriting  3) ineffective property operations (typically 3rd party) 

Their underwriting is pie in the sky unrealistic and puts little or none of his own money into his deals.

I put together an updated 2025 Oregon Coast Vacation Rental STR (AirBNB) Permit & License Rules & Regulation Overview that I share clients and colleagues with zoning questions about: where, when and how they can operate nightly vacation rentals from Brookings to Astoria - hopefully it helps investors avoid unrealistic permit or licensing expectations.

Lead with a one-sentence hook (“I’ve got a 5-unit value-add in your area that hits your 12% IRR target”) and follow up by asking if they’d like the full deal package.When calls are targeted and respectful of their time, investors pick up.Understanding 10,000 Prospects Is an Unrealistic TaskLet’s be real:If you’ve got a list of 10,000 prospects, how do you actually know each one’s investment criteria, recent transactions, and preferred markets? 

I agree with his breakdown in theory but that is so unrealistic in today's atmosphere in my part of the country.