Such methods are inherently inaccurate so they'll either overstate or understate the reality of the property.

When those costs are excluded or understated, the resulting performance metrics are inherently distorted.

They utilize a cap rate for valuation that is both too low on its face and also understates costs of management and operations2.

Understated capex or opex specifically.  

His big three principles apply perfectly here: document everything, stay consistent, and never get emotional.Confirm the Type of Marijuana UseBefore anything else, find out whether it’s medical or recreational use.If the tenant has a valid medical marijuana card, they’re protected under state law—but you still have every right to enforce your no-smoking clause, especially when smoke is affecting another resident (you and your family).If it’s recreational, it’s a straight lease violation.Either way, focus on the behavior (smoking indoors), not the substance.

. * Inherited 2 tenants, one was an elderly hoarder with a pit bull and the realtor may have understated the state of the unit (I invest remotely).* Elderly tenant had roaches, which got into neighboring unit and caused complaints there.* Elderly tenants dog nipped/bit a service person, service person did not pursue the matter.* Elderly tenant subsequently died (not in the unit) and had to dig through how to handle with remaining family.

It’s common for smaller operators to overstate rent collections or understate maintenance.CapEx reserves – Don’t underestimate deferred maintenance.

Repairs, cleaning and capex seem to be understated for a property this size, especially if turnover is frequent.

Recognize there are more RE challenges today than when you purchased in 2012.good luckMaybe I don't understand what you're saying because it's not laid out in an easily understable way but let me simplify the math.

He sells training and seems to have a high satisfaction rate (understating their satisfaction).