Strategies for deterring cash flow

[Isaiah Cuellar]

How do you guys determine cash flow for a property, assuming it's fresh of the MLS. Here's mine but I feel like it can be better

• Use Zillow and Redfin apps to look up similar rentals in the same area, note the obvious differences compared to my property such as unfinished backyard, proximity to main roads, pools, whether or not it requires a cosmetic rehab, SQFT, etc.

• Use Redfin's property value estimator to determine the value of these properties, and calculate the ROI of these properties (hypothetically, assuming the house was paid cash) only including home value and rental price they are listed for (not taxes and insurance) to determine general ROI of properties in the area.

• Select the properties most similar to mine, and use the minimum rent of these as my minimum expected rent potential. Say that would be $1,600 and my property is $220k, I would divide 1,600 by 220 to figure out exactly how much each $1,000 will get me (which is 7.27) and if the property is worth it, then include taxes, insurance, vacancy, and other expenses.

Also, in doing this I noticed the market near me is garbage, there’s more potential in C class neighborhoods but that’s too much risk at that point.