It was in rough condition, which limited competition and made it a strong candidate for the BRRRR method.Negotiation: After analyzing comps and repair costs, I negotiated a $420,000 purchase price, which was below the market value for similar properties in the area.

This property had significant potential for value enhancement due to its location and condition.

It would be based on the scope of work of the renovation that you're doing comparing for values in its as is condition and values after rehab 

Summary of expensesNOICap Rate Condition of the building systems  

Property ClassProperties are categorized by class, impacting their quality, condition, and investment profile:Class A: High-end, newly built, prime locations, attractive to institutional investors.Class B: Good quality, older than Class A, with minor deferred maintenance.Class C: Older properties with dated amenities, but value-add opportunities exist.Class D: Distressed properties in less desirable locations with high risks but potential for significant improvement.4.

. - Property type (single-family homes, duplexes, or small multifamily)- Min/max square footage or number of bedrooms and bathrooms- Desired cash flow or ROI metrics to ensure profitability- Property Condition (turnkey, light cosmetic fixes, or heavy rehab)- Neighborhood type (A/B-class areas for appreciation vs.

Prioritize stable cash flow, good location, and manageable property condition, while considering strategies like gradual rent increases, expense reduction, and value-add improvements to enhance returns.

Normally when a  property is advertised as "cash only" the property is in poor condition and/or the seller wants to reduce contingencies and opts for a cleaner transaction.

For this deal to work under those conditions, the purchase price would need to be closer to $179k.With your original assumptions 249k, the deal is marginally acceptable but not great, given the negative cash flow in the early years.

It’s above average condition in a good location.