[Calc Review] Help me analyze this deal

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Great metro area with high population growth & expansion. It's not hitting my target of 10% CoC for the first couple years (however, it is making $180 per door/month), but the area is extremely appealing and few deals come on the market. This is actually off market, so I'm getting a chance before everyone else knows about it. Built in they early 90's and the roof has been replaced in the last 4 years. Both A/C units have also been updated (will need furnaces at some point soon).

The unit has been 100% occupied for the last 5 years (with exception to a couple week turnover here and there). Am I crazy to accept a little lower CoC in order to get into the area which I believe has tremendous momentum and growth for the foreseeable future?

Howdy @Bill Parker

The whole purpose of establishing investment goals and criteria are to help you stay focused and not go down a path that you may regret later. 

That being said I believe your Cash Flow will not be as good as you show. You did not include anything for CapEx. I understand the roof and A/C are fairly new. However, there are many other items that can fall under CapEx and you should save for those possibilities. There are other miscellaneous expenses that will occur that can add up to an additional 5% or more. If you add another 5% for CapEx and 5% for the miscellaneous expenses that's another $191 off your Cash Flow. Just look at the 50% Rule Cash Flow to see what could be.

The bottom line is stay conservative with your analysis and try to keep to your criteria.  It’s your choice.