Start with the current rent roll, tenant profiles, and unit condition. In San Francisco, the biggest variables are rent control and tenant turnover. Long-term tenants often pay significantly below market rent, and allowable increases under rent control are limited. You’ll also account for vacancy assumptions, operating expenses, property taxes, insurance, and capital improvement reserves.
I help investors build a realistic cash flow model using actual neighborhood rent data, long-term appreciation trends, and honest assumptions so the numbers reflect both present income and future upside.