For a quick analyzation of a property, is this right?

[Jim Growfer]

I've been using this as a filter to see if a property is worth looking into further.  Is this accurate?

I look at the Gross Income and then do 50% of that to = NOI

I look at the purchase price and do 7% interest to figure out my Debt

and then I subtract.

Example: $2million purchase price

300k Gross income

150k NOI

140k Debt

= 10k Cash Returns a year