Here are the stats on the home: Goal is BRRRR strategy1910 American four square w original siding/woodwork3/1 1200sq ftRepairs to rent out: 35k (house has had nothing done to it for 30 years except for an added garage)ARV approximately 70-90k (recently sold homes are all over the place but nicer ones are in this range)Distressed comps are anywhere from 15-40kOwes 2500 taxes due end of MarchMLS listed properties are seeing multiple offers no matter the condition!

Mine has 1.5 and more square footage if you count the carport, front porch and back, screened in deck.

The problem that I am having is that when I use the four square method for analyzing rental properties I am getting a cash on cash return of about 6 to 7%.

.)- Square feet: 1,254- Let me know if I am missing any information.The property is a 3 bedroom, 2.5 bathroom townhome that is a end unit with a garage built in 2003.

250k is not realistic. the existing house footprint/square footage could be the maximum build already, so no expansion is an option at the price point. 6 months to evict, 2 months to renovate, who knows what condition it is in, 2 months to sell.

There are between 5-6 that serve the area I plan on being in but there are some serious red flags.

In my opinion, with Seattle's red hot market and escalating prices, the only places you'll find a deal, is probably in areas you won't want to live.  

After rehabbing costs (you will be inspected by a HUD inspector, and have to meet minimum living standards, which are not that minimum), assuming a 10% vacancy rate (not really a vacancy rate, but more like a "tenant not paying full rent" rate), plus associated costs, my CAP was in the red. 

Let's say the building is an industrial basic steel building that total will cost $500,000 to build, and it's a 10,000sqf building renting at $.06 per square foot.

Asking is at about 42 per square foot.