That could be anything from not accounting for capex/repairs/vacancy in their calculations or a complete lack of knowledge in how to calculate their future property tax obligation (this is a big deal in Michigan).Just the other day I had a call with an investor looking at a 10-unit property in Detroit.

Analyze properties using tools like BiggerPockets Rental Property Calculator to assess if a property will cash flow.

Tanya*This link comes directly from our calculators

I'm curious where the 33% CoC is coming from, as I calculate around 7% CoC. 

@Mayer M. and @Troy Sheets how do you guys calculate your cost per sq ft.?

The vast majority of states also leverage figures on a federal return as a starting point to define taxable income, making adjustments to those figures to arrive at the portions of income that are taxable for state tax purposes. 

Which calculation do you dislike and why?

Yeah, I did a calculation it is really hard to get a positive cash flow in beaverton where we live. 

Calculate all new subfloor and flooring, complete drywall replacement and subtract that from your offer.

This would allow you to keep the property in your portfolio and generate ongoing income.From a tax perspective, holding onto the property as a rental would let you take advantage of depreciation, which could reduce your taxable income.