I aim for 20% COC, at least in the pro forma.

Also, 3.5% in taxes is higher than normal (in my experience), so factor that into your reserves and your analysis.But, given the basic information, I would definitely pursue it further by doing some due diligence and putting together a more detailed pro-forma with actual expense/cost numbers and your specific financing details.

Another great time saving and organizational thing to do if you are rehabbing similar homes of similar size, value, etc. is to form a list of typical items you buy at Lowes or HD, and along with the price, you place the item number on your form.

Have the name of the LLC that you want to form as the singatory to the contract (make sure it is available first - and address LLC will usually be - 123 Main Street, LLC) or have the right to assign it.

My market is just over 600,000 in population, small compared to 100+ other markets, I'd be hard pressed to find 5, 40K properties in any year, to rent or flip, reality doesn't work with pro forma estimates, can't realistically have a model of buying the same price range +/- a couple thousand 5 times a year for ten years, it only demonstrates the theory.We haven't discussed the headaches in landlord operations, the difference in nicer more expensive homes and the cheapies.

quick review of their site I have the following observations1. pro forma  does not include maintenance and vacancy ( I understand they give a one year rent guarantee  and or you may buy vacancy insurance).

I've seen some 4-plexes around Bryan with some interesting pro forma numbers.  

Monthly Cash Flow = Gross  Monthly Rental Income - Operating Expenses (utilities, insurance, taxes, Management fees, water & Sewer, etc.)Pro Forma Cap Rate is projected year to year with increases in rent and expenses.Purchase Cap Rate = NOI / Purchase Price which should be around 8% to 10% or so.NOI is Net Operating Income or your Yearly Cash Flow as above times 12 months.Debt Coverage Ratio = Annual NOI / Annual Debt Service or your annual mortgage payments.Lets say your yearly NOI is $40,000 and your monthly mortgage payments are $2,700 x 12 = $32,400.

I am beginning to do walk throughs on small multifamily (2-4 unit) properties that I have done analysis and pro forma due diligence on.  

They have done dozens of properties worth many millions and are doing very well for themselves and their investors.They solicit investors (accredited only) and indicate past returns on past projects and do pro-formas but no return is promised.