A buddy of mine, who’s been an agent in the Phoenix market for nearly as long as I have, once had a client who stumbled into a 1031 that shot their returns through the roof because they snagged a property near one of those new tech corridors sprouting up.. from what I’ve heard, that corridor’s been buzzing with interest lately.What’s exciting right now is seeing how investors are leveraging 1031 exchanges to pivot into markets that are on fire.

Leverage magnifies return. 3) The effort involved in adding an ADU is comparable or larger than a rehab associated with a BRRRR.

This will also make your cash-on-cash return go down.

I'd recommend the spread on the return and your ability to replace damaged items (local vs. not local, strength of your team) be the determining factors in that decision.

Now you're at 11% return.

Funny, your comment brings back memories.

Cleveland investors often aim for COC returns of 8–12%, so you’re in the right range.Net Cash Flow: $277/month is positive and provides a buffer for unexpected expenses.

Hey y'all, I have taken quite a break from these forums but have decided to step back into these by reintroducing myself. I got into the industry in 2014 with a property management job on Lake Ponchatrain in Slidell, ...

Just go through them, select the renovated/closely matching ones, and enter them into a model.Here's my fix & flip model, you can see the comps entered and some quick stats below them: Then I use that comp data to adjust the Sale Price in the model to what I estimate it will be (double check the resale $/sf is in-line with the comps), then adjust the purchase price until I hit my desired return level. 

Adjust return based on holding time and risk reward.