Yes I think estimating 5% would be a good start and then once you know the school district you can get a better idea of what to expect.

Reno and house appreciated quite significantly 400k to 550k estimated. 

Thank for your help Connect with a great property manager or use one of the free online tools to estimate rents.

Deduct NEW property taxes after you buyDeduct home insurance costsDeduct maintenance percentage, typically 10%Deduct vacancy+tenant nonperformance percentage(we recommend 5% for Class A, 10% Class B, 20% Class C, good luck with Class D)Deduct whatever dollar/percentage of cashflow you wantNow, what you have left over is the amount for debt service.Enter it into a mortgage calculator, with current interest rate for an investment property, to determine your maximum mortgage amount.Divide the mortgage amount by either 75% or 80%, depending on the required down payment percentage - this is your tentative price to offer.If the property needs repairs, you'll want to deduct 110%-120% of the estimated repairs from this amount.Be sure to also research the ARV and make sure it's 10-20% higher than your tentative purchase price.As long as the ARV checks out, this is the purchase price to offer.It is probably significantly below the asking price.

@Vincent WeselakIt’s a good idea to get an estimate for your insurance costs upfront since this can vary based on the property type and location, and it’s a key factor in evaluating your cash flow. 

Yes, estimated about $30-35K in repairs and negotiated that into the purchase price as best as I could. 

If you can get a loan at the 6.5%, you're saving another 5k a year off your estimates. 

It’s always a good idea to consult a local real estate attorney and title company for more accurate estimates in your area.

If I did set out to invest in the local area, I would scrutinize the numbers like crazy and be extremely conservative with my estimates.

I'm getting a contractor/ structural engineer to come by and help me draw estimates and understand how serious these issues are.