Hey guys, I have a Detroit rental property that has tree roots in the storm and sanitary and both are trapped.

I imply from your assumptions that the units are currently way under-market (for my own back of the napkin math's sake, if you bought the property at the same 6.45 cap, then the NOI is currently ~$58k).

A napkin and a pen @Steve S.!

Frank's number are based a certain set of standard to do a back of the napkin type calcualtion to see if your pruchase price is around the same as what the owners is stating how the property runs.

Know how to look at a deal and do "back of napkin" analysis.

I'm not super familiar with the bigger pockets calculator but I've "back of the napkin" calculated a lot of properties.

Back of napkin, if you found a paper investment yielding 7%, that $250k in capital + $333/m to feed the beast would be worth ~$817k in 15 years. 

@Travis White, my napkin calculations suggest that if expenses come close to 50% of current rent, that a cash outlay of $300k would get you between 6% and 7% net return.The gentrification of the area is something we can't/shouldn't really address, because you have to use your own best judgement.

You might want to check those numbers to make sure that's what you're looking forJust a back of the napkin calc shows that your month net operating income might be almost zero  Asking price $135000 Monthly payment  ~$1600 Monthly income  $1800 Water  $80 Repairs  $100   Total expenses  $1780 Total monthly NOI  $20   Keep in mind that $100 for repairs a month is probably a low estimate and the monthly payment of $1600 includes taxes, insurance, principal and interest.

In order to pass VA appraisal the home must pass the 3 Ss; Safe, Structurally Sound, and Sanitary.