This is why every deal analyzer has allocation for CAPEX and repairs as an expense.

@Jack Calhoun There are a few "rules of thumb" but ultimately, you'll need to do a full underwriting on a property before you actually put in an offer.I would suggest finding a good property analyzer spreadsheet and getting enough practice that you can quickly do an initial analysis within 30 mins or so.Some things to look for in a property analyzer: Allow for separate entry and exit cap-rateMin 5 year forecastinput for rent/expense growth on each yearincludes rehab and capex costsincludes debt service and financing costsincludes acquisition and disposition costsProvided IRR for planned exitHonestly, there's a ton more bells and whistles you could add, but I would consider that the baseline if you're talking about deals that size.Hope that helps!

I would greatly appreciate someone telling me how they would analyze this and what do they think they might do in this situation.

This site offers a tutorials and a deal analyzer where you just plug in numbers to get your calculated return on investment.

Even though we try to help and offer advice to the new folks trying to get into this crazy business, it is downright amusing seeing the growing numbers showing up asking us to analyze their potential deals and suggest areas to invest.....usually with little apparent knowledge or effort on their parts....This business has the unfortunate appearance of being 'easy money' because the stories abound about the people that are sitting on properties worth millions.

I have just started using the calculator to analyze properties.I have noticed that when I enter data as a cash purchase vs. when I enter 25% down, there is little to no impact on the CoC number. 

Put in the time researching your local market and learn how to analyze a property to determine if it is a great deal.

Hi team, I have been analyzing deals for 6mos and haven't pulled the trigger on a flip yet. 

I’m reading books and trying to analyze properties and this is definitely going to help!

The house now has appraised for 325000 , analyzing the for how much houses are selling in my neighborhood with the same house specifications.Bought the house January 2020 after selling my house in North Carolina , I did irrl refi with 2.25 % which has been really beneficial to me in regards monthly mortgage payments.I am looking to buy another house near my area , I got pre approved for conventional loan , 420k maximum .