For example a property with a $100,000 door cost and very little capex is going to be a much better deal than a property across the street that is $80,000 per door but has significant deferred maintenance.So the analysis is preliminary and either can be used, but at end of the day you need to deep dive into the entire picture.

Cleaning after every tenant does great, but every so often, you need a deep clean.

Looking at some properties around there and it seems to be the norm to have a cesspool in a few towns (WW, Coventry, NK/SK)Any immediate watchouts or gotchyas / red flags?

@Seth RoseI would look at the approach from a revenue mindset, not a discount mindset (which is where the BRRR concept was born).Firstly, I would like to point out that properties with great cash flow potential and deep equity positions aren't just floating around the MLS.

Thats a red flag.  

To me this is very market dependent and product dependent.. in our Market some developments that are red hot that Lennar owns they might only offer 5k on a 600k sale.

But there are also some real challenges, like dealing with lower tenant quality on average, the extra red tape, annual inspections, and the longer time it takes to get tenants placed compared to the open market.

But those units were all deep south section 8.

Sure enough the new owner was not renting their newly acquired property.Since rents have sharply escalated over the last few years, a rental with too low rent is a red flag of possible fraud.I sold a property in 2014, for $30,000 over 10 years ago.

Deep knowledge of tenant segments and their behaviors is essential, and this expertise comes only through a good property manager.