Reverse engineering good deals using BP calculators

[JP Garcia]

I'm sure there are posts on this and I'm not searching under the correct terms, so apologies if this gets asked all the time.

Quick history:  I found the BP podcasts and website via "The Book on Rental Property Investing," which I downloaded a few months ago.  Prior to that, we had two condos that we lived in, then rented out, and eventually sold because cash flow wasn't good.  For our next deal, I am leveraging the tools on this website pretty hard.  

One way I use the calculators is to "reverse engineer" or "reverse analyze" deals. If you take a BRRRR for example, I use dummy data to see what price point I need to buy at to get the returns I want. Example scenario: There is a neighborhood of SFHs that are, on average, $150K. Rents for similar houses in the area go for $1500. To pull these rents, I think I need to do $15K of renovation. If I know this, I can back calculate, using the BP Tools, that I need to buy this place at $60K or $70K to get my cash flow target. NOTE: I haven't run this scenario, it's just for discussion.

Am I missing something by doing this?  I am still a newbie at the real estate investing game, so I can't identify reasons why this type of analysis could be bad (assuming that more in-depth analysis is completed when identifying actual buy targets).

Thanks in advance for your input and advice!

-JP