Any one single criteria could be off. Now I am no expert on any of this, so take that with a grain of salt. But I came here to learn all about this crap and if there is anything that I have learned it is that you can’t just focus on one thing. It is a complex dance, and if you only know one step your either gonna get kicked in the shin or steped on. Look at rent ratio’s, look at PPSFT, Look at interest rates and vacancy rates and overestimate everything alittle. You won’t get that ultra low rate, you wont get that top 1% rent, and you will have higher costs than you realize in the beginning. And dont count appreciation into the equation, atleast for the first 5 years. If you can do all those things, and it still is decent to buy, then you’ll be ok. Just dont wait for your magic number in one criteria and just sit.
That is the biggest thing I have learned here. Correct me if I am wrong.