Unless you perform a Phase 1 to make sure the soil is clear, this can potentially be an issue.

Property seems to be in semi-good condition but we would like to perform some renovations on our unit (upgrade kitchen).

But I never perform the calculations on any higher percentage.

The seller will have to put trust in you and you will need to have confidence in yourself that you can perform.

If its crucial work I imagine you could find a hungry GC that will perform essential work.

They still impact the performance of the property.

While the world embraces tech tools to automate workflows and tasks, reduce errors, and thereby increasing precision, the Appraiser is basically doing the same thing they did 80+ years ago.  

Great at selling outlandish advice books, coming up with off the wall predictions that work as much as tossing a coin, and charging egregious fees on funds that have to be delisted due to consistent under-performance.

If you can get this property to perform at a 6 cap and you are in a B-A hood, then probably good, if you are in a C-D, then I think you are asking for a lot more headache than it's worth.

@Ray TroundayWhen I plug this into my performing note calculator spreadsheet, I get an IRR of 21.4% which is close to the yield you calculate above.