Hi BP communityI've gone by the assumption that the only way one can do well in the flipping business is if you have cash to buy good deals.

You can make the assumption that about 50% of your rent will go to expenses (10% property management, 10% repairs, 10% vacancy, 10% CapEx, insurance plus $150 for taxes).

If the assumptions made for rent & expense growth, post-renovated rents, economic vacancy factors and expenses are way off, the IRR you are looking at isn't worth the paper it's printed on no matter how the waterfall is designed. 

I have built in some assumptions due to the current low rent level ($625 for the 3 bd 1bth) and I am assuming I can rent the garages for about $250 per month.

My assumption is that Little Italy real estate comes at a premium.

E.g. if condo conversion or some similar alternative is not possible, I will revisit my plan to identify the next best option which might be building and selling a SFH.Note: I am operating under the assumption that two separate units will amount to more than a single SFR.

Some answers to your assumptions, and questions back to you:1.

You should take that assumption out of your calculation, and then you’ll have your answer.

I'd caution against making assumptions on a home before seeing the inside.

We use direct mail and other methods of outreach to act on this assumption, hoping to receive a response.