How conservative to go when analyzing BRRRRs?

[Thomas Jerome]

How conservative should I be when analyzing a BRRRR deal? I only recently started analyzing deals for potential BRRRR properties and for the projected rent I have been putting in the 25th percentile rent for the area's zip code. I have also been putting in the lowest comp price in for the ARV. Is this something I should be doing to make sure the deal is a homerun or put in numbers more pretanabel the property I'm analyzing?

[John Teachout]

I'd put in numbers that are as realistic as you can come up with. If you're not sure, then erring on the low side for income and high side for repairs is wise. Repairs and holding costs are often underestimated. ARV is often overestimated. You don't need a home run but don't want to strike out either.