@Polat CaglayanI've never seen a formula but here is a general rule of thumb for multifamily:The class of an apartment refers to the quality of the building, which can be determined by a number of factors, including age, location, and condition: Class A: These are the highest quality apartments, typically built within the last 15 years.

I think another factor here in determining whether its a good investment is your age and your goals. 

Speed of building a portfolio (Cash-on-Cash return is a factor here)?

@Theresa Amouzou A lot of factors go into finding good deals.

In addition, if this was originally an owner occupied house, there are often homestead exemptions where the first  $XX,XXX. of the value of the home aren't taxed.  

And this low demand could be a couple of factors, either a rural location with low population density or the area incomes are not high enough in order to prevent a rent burdened scenario. 

Are there specific factors you look for in an area to make sure it’s a good fit for this type of rental setup?

This includes flooring, painting, bathroom upgrades new light fixtures, usually there’s about $800 in electrical costs factored in here and all new cabinet hardware.

There is a barrier to entry, and the city is pro business, but our market had much better metrics.Lower entry points should not factor into getting in a market.

And while yes, no one has the same pricing (combination of factors), I also continue to check on a regular basis our rankings and how we "present" on total costs per stay vs. our competitors.My gut says there is price creep and we might have a ways to go before the market really corrects.