It feels like there’s always a surprise—whether it’s skyrocketing material prices or finding something unexpected during the demo—that eats into the budget and profits.I know there’s always more to learn, so I’m curious—how do you approach rehab budgeting?

Now, if you listen carefully you will find that he too found some of the same things that others mentioned...no deals in Austin, prices were too high...but then he adjusted his approach and nailed it!

I like the 1% rule it's a conservative approach to underwriting and aligns with my risk mitigation techniques.

Thank you for your thoughtful feedback—it’s clear that I need to clarify the distinction between my approach and the traditional perception of “cheap rent.”

Best regards, This approach is neutral and objective, focusing strictly on the criteria, and avoids discussing any specifics about the applicant’s personal situation.

Totally agree with your approach!

Columbus in particular has been a strong market for both approaches, with solid fundamentals for long-term appreciation and cash flow.

Or you can try James' approach to sell before the significant cap ex items but I suspect you will be selling at a price that reflects the impending coming expenses.It is my belief that you have never calculated out your sustained maintenance/cap ex costs and truly believe this has positive cash flow.I am trying to provide some insight as to your view and to your situation. 

Your specific variable expense assumptions are wrong, BUT you stumbled into them being correct overall.Also, you are approaching this correctly - entering in the numbers to generate a purchase price that meets your metrics:)

Most stop their analysis at LTC leverage which is a flawed approach.