Is the cash flow sufficient? BRRRR Strategy

[Joshua Martin]

Hey gang, This deal seems to be a good one, but when I crunch numbers I don't know if it is impressive enough. At least I know many investors who probably wouldn't settle for this return in my market. Keep in mind that being a newer guy I might be willing to settle for a bit less of a return than the big guys. In any case: Duplex 2/2 Rents at $775 GSI: 1550 Vac @8.3 128.65 Tax 242.42 Utility: 75 Maintenance & Capex @12% 186 Manage 155 Insurance 100 Expenses: 887 Debt service at 30 yr, 5%, 82,650 mortgage $463 Cash flow - 200. It would be a BRRRR and I have cash lined up for purchase at 57,5k or 60k, and fairly confident appraisal would come at 115k. Needs about 15k in work to make rent ready. Should everything go well, COCR is infinite if I completely cash out, but in a B- / C+ residential pocket with minimal appreciation, is the cash flow sufficient? I think I'll go for it either way, because I'll self manage and repairs will be done up front, but running the numbers accounting for vacancy, repairs, and management, the cash flow is less than I anticipated. Are my expectations unrealistic? Or how do this deal sound to you? Thanks in advance. Best, JTM