It would be based on the scope of work of the renovation that you're doing comparing for values in its as is condition and values after rehab 

It was in rough condition, which limited competition and made it a strong candidate for the BRRRR method.Negotiation: After analyzing comps and repair costs, I negotiated a $420,000 purchase price, which was below the market value for similar properties in the area.

Do the condition of the units match market rents?

Property ClassProperties are categorized by class, impacting their quality, condition, and investment profile:Class A: High-end, newly built, prime locations, attractive to institutional investors.Class B: Good quality, older than Class A, with minor deferred maintenance.Class C: Older properties with dated amenities, but value-add opportunities exist.Class D: Distressed properties in less desirable locations with high risks but potential for significant improvement.4.

Ranges can be fine if they’re in good condition, but inspect them thoroughly.

For this deal to work under those conditions, the purchase price would need to be closer to $179k.With your original assumptions 249k, the deal is marginally acceptable but not great, given the negative cash flow in the early years.

They’re fully renovated (or in good condition) and often come with tenants already in place, so you can start making rental income right away. 

This property had significant potential for value enhancement due to its location and condition.

Prioritize stable cash flow, good location, and manageable property condition, while considering strategies like gradual rent increases, expense reduction, and value-add improvements to enhance returns.

I would remind them that the house is in the condition in which they rented it and they accepted it as is.