Quote from @Katie Camargo: Recently closed on an older property that needs some updating.

I tried calculating value based on NOI and cap rate (see below) but I'm new to this and the value seems to come out lower than I would expect.

I've since closed down to focus on other businesses and run my own STR's. 

The digging out has priced out much lower than we thought initially, so we’re using the additional money for an overhead sewer (the only flooding we’ve had in the 13 years we’ve lived here has been sewer back up).

I feel like there's still people trying to make BRRRR deals work close to the city and the truth is it's nearly impossible given prices, rates, and the cost of construction.

I would remove debt to a 7-10 year time frame and lower fixed costs, at minimum.

I have worked with the closing team, renovation team, the property management team, and the customer service department.

that we’ve learned in our 24 years, managing almost 700 doors across the Metro Detroit area, including almost 100 S8 leases:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+ (roughly 5% probability of default), zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680 (around 10% probability of default), some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

I have a BP member client who has purchased two oceanfront units there so far and another client of mine is scheduled to close on her first one later this month. 

Hey, I’m not an investor, but some unexpected costs to consider are closing costs, agent commissions, and most importantly, taxes.