he is also working D low C class areas and those are dominated by wholesalers full stop.

So, insurance premiums are getting VERY expensive.Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a Class A property in Class D area, what quality of tenant will you get?

My properties are Class C properties.

I can show you top class A, B, and C markets if you have interest. 

It will definitely be in your favor to know the block by block areas because you can be on one street that has middle class working people and the next street over having riff raff.I'm in Delhi Township in the Westside if you ever want to network!

What level of asset class are you buying? 

This goes to Section 8 gurus, C-D class BRRRR gurus.

PM - probably 10%MNT - should be 10%Vacancy - everyone thinks it's 5%, but that's only for Class A properties.

Eventually, Class A property values increased to the point that even increasing rents didn't allow them to cashflow upon purchase.So, the flood of new investors switched to buying Class B properties.

Deduct NEW property taxes after you buyDeduct home insurance costsDeduct maintenance percentage, typically 10%Deduct vacancy+tenant nonperformance percentage(we recommend 5% for Class A, 10% Class B, 20% Class C, good luck with Class D)Deduct whatever dollar/percentage of cashflow you wantNow, what you have left over is the amount for debt service.Enter it into a mortgage calculator, with current interest rate for an investment property, to determine your maximum mortgage amount.Divide the mortgage amount by either 75% or 80%, depending on the required down payment percentage - this is your tentative price to offer.If the property needs repairs, you'll want to deduct 110%-120% of the estimated repairs from this amount.Be sure to also research the ARV and make sure it's 10-20% higher than your tentative purchase price.As long as the ARV checks out, this is the purchase price to offer.It is probably significantly below the asking price.