First variant factor for valuation is conversion factor of gross to net revenues, both in current realized and potential.

Even if you included $100 per month in maintenance/repairs and $100 in property management (I know a PM that will do 7%) you'd still be cashflowing ~$250 per month. 12% CoC return based on 20% down.  

I could probably rent it for $750-$1000 per month over what the standard monthly costs are right now (not including vacancy, maintenance, management company, etc).

For simplicity sake, let's assume a 40% expense ratio, giving a net operating income (NOI) of $216K.If we were to buy at their asking price of $2.99 million, we'd be looking at a cash-on-cash return of 7.2%, and that's without factoring in capital expenditures or debt service.I'd say this one has a looong way to fall before it's a deal!

That is an exception though - most of our sports related stays are driven by ESPN all year, including the summer months.

But from 2020 through 2023, we experienced a market imbalance fueled by a number of factors:  Revenge vacations resulting in not enough supply, cheap money, and lots of sunshine pumping by "seasoned" real estate pros.So if you bought in 2019, it's likely that today's numbers are working out quite good for you.

Any red flags or important clauses to include in our contract?

There was carpet almost everywhere including the bathrooms.

Turns out nobody else in the industry, including lenders, really understood the negative impact these loans would have on millions of people.

We get calls all the time from people that claim to be investors wanting to buy one of our properties (including some we sold more than a year ago - shows how accurate some of the pay lists actually are) and when pressed, it is clear they are fishing for deals to wholesale without having buyers lined up.