Please feel free to review details below and shoot me a message if central NJ is your primary market.https://www.zillow.com/homedetails/219-W-Summit-St-Somerville-NJ-08876/39914137_zpid/ After running general numbers (not 100% accurate due to lack of experience) through the calculator, my eyes were opened by a -5.83% CoC ROI.

Assuming your expenses are accurate that looks fairly solid.

Or the lender may want you to shop out your rehab quote to a couple different contractors to make sure that the numbers are accurate.

Computers can't always accurately judge how attractive floor plans and locations are.  

Zestimates are only as accurate as the data behind them, so if the number of bedrooms or bathrooms in a home, its square footage, or its lot size are inaccurate on Zillow, the Zestimate will be off.In simpler terms, don't trust a Zestimate.

Applying a RUBS plan to charge tenants more for a more accurate use of utilities.Ratio Utility Billing System (RUBS) is a system through which the owner can bill back the tenants for their utility usage based on formulas that take into account the unit size and number of occupants.

@Michael Plaks  - It seems we agree, but I may have to learn to say things more accurately. 

But, @Jay Hinrichs might have accurate information on this IRS situation as he hasn’t experience, but every title person I have ever talked to has told me that taxes NEVER go away like junior liens if they do not bid their position and redeem.

We believe (accurately or otherwise) that doing a small deal and partnering with an experienced syndicator in this sector will enable us to better identify and mitigate risk.

Using a cap rate or a gross income multiplier leads to valuations that are crazy outrageous and just cannot be accurate in a market where real estate trades around a 3-6 cap, and a 166 - 200X monthly GIM.