[Calc Review] Is 5.97%ROI good enough for a rental property?

[Katie Huynh]

Hello BP Community,

I did a data analysis on this property as for potential rental property. But I'm a newbie and I don't know if my calculation correct and reasonable, so I'm asking for your expertise here if you can help me figure out if it is a good deal.

Info on the property:

This is a 3 beds 2 baths 1,112 sqft property in Portland, OR built in 1979.

It is foreclosed and recently on the market asking for $270K. I was told that never offer the listing price and always go with 80% of it. So hypothetically I'd offer $220K. The house looks still in good shape so I estimate $5K for TLC. Property in this area is worth $1700 - $1800 rent.... so long story short, I ran the number and it shows $201.58 monthly cash flow with 5.97%ROI. I heard that we should not make a deal for rental property if ROI is under 12%. Is it correct? or it's just a preference number?

Also, is my offer insane? How likely that the buyer would accept offer that way below what they're asking for?

Please review the report below and give me some advice.

Thank you!

View report

*This link comes directly from our calculators, based on information input by the member who posted.