That BRRRR book was written a long time ago in very different market conditions.

Quote from @Marco Solis: Moe,I would like to get $2,000, but I will need to do more research on market conditions once all the renovations are complete.$2000 on a 200k investment is excellent; it passes the 1% rule, which is kind of unheard of nowadays.

On top of that, VA loans are great for buyers but they aren't always attractive to sellers due to stricter property condition and appraisal requirements than other types of loans and obviously they are not nearly as attractive to the seller as a clean, cash offer would be. 

So, if you fail to apply the correct assumptions to a property, your expectations won’t be met, and it may even be a financial disaster.We use the following to rank Property Classes, in order of importance:Property Tenant Pool: closely linked to location, but not always.Property Location: closely linked to tenant pool, but not always.Property Condition & Amenities: it’s important to, “Maintain to the Neighborhood.”Key metrics for each Property Class:Class A Properties:Tenant Pool: Majority of FICO scores 680+, no convictions/evictions in last 7 years.Tenant Default: 0-5% probability of eviction or early lease termination.Section 8: Class A rents are too high and won’t be approved.Vacancies: 5-10%, depending on market conditions.Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Class B Properties:Tenant Pool: Majority of FICO scores 620-680, some blemishes, no convictions/evictions in last 5 years.Tenant Default: 5-10% probability of eviction or early lease termination.Vacancies: 10-15%, depending on market conditions.Cashflow vs Appreciation: Typically, 1-3 years for positive cashflow, balanced amounts of relative rent & value appreciation.Section 8: Class B rents are usually too high for the Section 8 program.Class C Properties:Tenant Pool: Majority of FICO scores 560-620, many blemishes, but should have no convictions/evictions in last 3 years.

If the tenant stays and the unit stays in good condition, rent increases are usually possible with housing authority approval.

@Marc ShinIf you’re buying tenant occupied, make sure you get a copy of the lease, rent history, security deposit info, and a move in condition ifno as part of your due diligence. 

I look at market conditions and depending on trends (I can't predict the future :-) I simply calculate.

Just be mindful of the local rental demand and property condition, since FHA can have stricter appraisal requirements.

They may condition a 1004D.

I’m flexible on price per door depending on location and condition, though I’m primarily targeting strong cash flow and a 14–16% IRR range over a 5–10 year hold.I’m open to markets like Wylie if the fundamentals support stable long-term growth.