BRRRR Analysis on a Duplex

[Meghan Macur]

When utilizing the BRRRR method of investing, are you necessarily looking at cap rate and cash on cash? Analyzing a 2-unit 2bd1bath, my ROI at the price that I would offer is 1.23% and cap rate is 5.64%, before putting the money into improvements. This is only $55 in cash flow after setting aside 5% each on repairs, vacancy and CapEx. I believe I could sell at $225k, and my asking price would be $175k. Improvements would be around $30k and I would plan on holding 2-7 years. Deal or no deal? My realtor says at the price I'm offering I might not even hear back (it's listed at $213,500, owned by a local realtor).