However, a common benchmark is aiming for at least 6-8% cash-on-cash return based on your total investment (purchase price + rehab + closing costs).Always factor in appreciation potential, tax benefits, and personal risk tolerance.

For example:CapEx: $250-300 per unit per year for older properties, adjusted based on age and condition.Maintenance: $500-800 per unit per year, depending on property class and tenant turnover.Make-Ready Costs: $1,000-2,000 per unit for turnover, depending on the scope of work required.Resources and Tools: Utilize tools like BiggerPockets’ Pro Calculator or other underwriting spreadsheets that have built-in assumptions for these categories.

Another variable in the amount of rent that a Section 8 tenant can pay is HUD limits their rent payment based on the amount of their income. 

An additional benefit of a detailed engineering-based Cost Segregation Study is that it can increase potential insurance premium savings as well as provide support for the property tax appeals process.

The price we thought was very reasonable in this current market based off the other properties we have seen prior to that with similar layouts. 

Based on what my real estate agent thinks that this quote will be, roughly, and the after repair value, it looks like I could buy this property in cash, spend a month or two fixing the damage, and then put a mortgage for roughly 1.6x what I paid for it and thus have a cash flowing property at a few hundred dollars per month and a little more money in my bank account ready for a down payment on the next deal.

I have about $300k in equity (based on a BPO performed in July 2023) but no cash.

See the map below for where these zip codes are located.Note: The following charts only include properties in the above zip codes that generally match our property profile: single-family homes featuring 3-4 bedrooms, 2-3 bathrooms, 2-3 car garages, 1,100 to 2,400 square feet of living space, 1 or 2 stories, and lot sizes ranging from 3,000 to 6,000 square feet, built on or after 1985.Appreciation10-Year $/SF by Zip Code 2015-01-01 to 2024-12-31From the above charts, these zip codes appear to appreciate the fastest among our target areas (based on annualized growth rate)89032 (North Las Vegas), 11.0%89015 (Henderson), 10.4%89143 (Centennial Hills), 9.9%89031 (North Las Vegas), 9.8%89138 (Summerlin), 9.4%89141 (Blue Diamond, Southern Highlands), 9.4%89128 (Summerlin), 9.3%89123 (Silverado Ranch), 9.1%89129 (Northwest), 9.1%5-Year Pre-COVID $/SF by Zip Code 2015-01-01 to 2020-03-01The COVID market frenzy and the subsequent dramatic rate hikes significantly distorted price and rent trends.

Run your numbers based on youre required return given what youre likely to have to spend and the amount of headache, risk, and work you have to do.

For context, I'm based in the SF Bay Area in CA and looking into buying my first OOS rental after house hacking locally for 10 years.