Will Banard Formula - To Buy or Not to Buy

[Jay Sherman]

Will - you concluded not to purchase a property discussed at Rosy's club last Thursday. The subject property was in Los Angeles, a wholesale purchase (duplex) for $185K, $90K to fix it, ARV was estimated to be $375K to $410K. (rents were estimated at $1600 and $1200) Holding costs of 7 months, plus closing costs totaling $47,000 (I think that was the number you came up with)
Can you briefly discuss your reasoning / formula again for not purchasing this property. You were so quick and efficient about it that I could not write everything down. (in addition, I think you mentioned annualized return and cash on cash). Thanks in advance!