Must know RE investment formulas?

[Andrew Rodriguez]

As a young future investor I have been trying to do some practice runs on houses in my area in hopes of figuring out how to estimate purchasing RE investment properties. Roughly speaking I've been practicing how to measure ROI's, Gross Rent Multiplier, and Cash on Cash returns. However I feel like there are some other important formulas I should be aware of when estimating the worth of a REI property. Any tips, websites, or formulas you all think I should look into when going through the process of figuring out the logistics of acquiring a REI property?

Thanks!

[Andrew Fielder]

Total Return = income return + capital gain

Understand what underwriters look for ie. IRR, NPV of cash flows, Debt Coverage Ratio (DCR). You need to be able to put a DCF analysis together in excel.

I analyze a lot of development sites and you look at the residual value of the site ie. what can I pay for the site given XX% required profit margin, expenses, revenues etc. This analysis would also work for a rehab.