@Jonathan Streufert
Thanks Jonathan! I really appreciate the feedback here. It's so nice to get such thorough input, especially from people in the area.
About the analysis (credit: www.homey.com). Although some will probably think it's too simple, it does forecast a bunch of different expenses (e.g., 5% vacancy, 8% prop mgmt, 2.5% leasing fees, 14% repairs/capex). I actually like doing it this way (vs the 50% rule) because I can balance out the expense conservatism with a location-based forecast for appreciation.
I know Zillow is like the bane of existence for a lot of folks in real estate and I get why. But if I am going to put the time in to nail out the possibility of expenses, I think it is acceptable to balance the analysis with the possibility of a higher appreciation rate (or lower in some areas).
I get that any appreciation figure other than the standard 3% is looked down upon, but I think it helps when I'm evaluating a bunch of properties (e.g., nashville vs detroit area).
Anyway, I do like the metrics you pointed out (1% rent-to-price), and yes, $100/month in CF is probably too light. (And I know I stated it before, but the analysis is based on the list price and advertised market rent).
Other than Oak Park, what neighborhoods are people still excited about? I've heard Jefferson Chalmers or East English Village area isn't too bad for SFR.
