The acquired building were over 100 years newer and had more modern/desirable features like central air conditioning, integral garages, and fireplaces.Another time I 1031ed property in a distant town for property much closer at hand and easier to manage, it also commanded higher rents.

To come out $20k ahead at the end of the day on your first stab isn't bad at all and you learned some lessons for future flips.I know that area well and even looked at this particular house in it's original condition.

Of course this method would take market conditions in to account.If NYC Park Ave was going ultimately south, you would bail out , unlikely as that is.

After factoring in my Cost to Purchase of $4838....My cap rate is at 6.15% (I consider okay for NJ and condition of property), and my CoC is 4.74%!

The market is strong, good job outlook, and sound economy.My concern is that with so many other units in the complex that I lose control of the condition and pricing on those competing units.

As an aside, an appraisal would be FMV in it's current condition and not reflective of an ARV.

Location, sizes, styles, acreage, condition, views, external factors (busy roads, the dump, lake view, golf course, etc).

It took me a while to look past the numbers and think about owning the house and the age of the roof, type of siding, windows, sewer lines, trees that will need to be trimmed or taken down eventually, the condition/age of the furnace and AC, etc.

Unless the property is in terrible condition, the 25% vacancy seems a little high.

The good condition of the property, upside on rent, and predominant owner-occ neighborhood are big pluses.