[Calc Review] $217 cash flow for a SFH good enough?

[Drew Clayton]

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I'm still a fairly new investor, and am not entirely confident in my use of the calculator. I have a SFH in Columbus, OH under contract for $87k, and the seller is willing to go down a little more to $85k. Rehab costs are estimated by my more-experienced partner to be $35k, but he doesn't like this deal. For his criteria, there may not be enough meat on the bones, but from what I'm seeing, it doesn't look so bad as I'm in the early days of my investing. Does anyone see anything I blatantly put in wrong that could make this a bad deal disguised by my own inexperience?

Also, it's listed as a 3/1 with 1100 sq ft, but actually has a fourth bedroom that just needs a closet, so the ARV could be a bit higher based on comps I'm seeing in the neighborhood.

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

[Joe Villeneuve]

Every decision you make, to committing funds, impacts every opportunity you have after that decision.  Don't accept base hits.  It will take you three to score a run.  Home runs take one.  Apply those numbers to properties, and it plays out like this:

1 - 6 singles = 2 runs
2 - 4 doubles = 2 runs
3 -3 triples = 2 runs
4 - 2 HR's = 2 runs.

How many properties do you want to do, or how many opportunities do you need to find, to get 2 runs.

How many runs do you need?  Whatever the answer is, divide by 2 and that will give you an idea of how many properties you need to do based on the quality of the "hit".