Let me add that IRR is an intrinsically flawed metric for standard real estate investments.

One flaw I see is that you are going to need to overcome the inherent guard that investors have when renting to students.  

Please let me know if there's a flaw or any assumptions I should add to make it more accurate. 

The design was to be based on flawed data somewhere, or a change in conditions.

But in practice, $500 if you can get away with it, $1000 is also common these days.For how soon to close, I think a "fast" closing would be 30 days out and wouldn't make it less that if you haven't already started the title work.A lot of these "motivated seller" properties have title issues so you want to allow enough time for a good title search to uncover anything like that.6.)

Formulas work fine - Your assumptions and applications of the results may be flawed.

Possible issues:Minor amount of chipping paint in a bedroom and some exterior siding - in a pre 78 house Few small holes in the walls Uncovered electrical breaker in bedroom detached garage may need new roof Swimming pool has no cover or fence, and back yard fence is broken.

I would target a few pockets you like, and start seeing what you can uncover.

Though I am newer, this strategy is flawed in my eyes for several reasons:-If you are hiring out contractors to do the work (which is generally the case), the cost is no greater when installing an expensive granite countertop versus a cheaper marble material-The appraised ARV will be lower with lower-end finishes-Your time return on investment is lower, because you still have the same scope of work (generally) for a lower profit-Your exit strategy will be more difficult on lower-end finishes if you ever choose to sell in the futureThese are probably obvious to anyone who argues not to go with high end finishes on rentals, so I really don't see the counterargument.

Here are some simple steps to uncover the reality about demand in your market:Start with the apartments in the area.