My deals always end up in the negative.

[Jonathan Girard]

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Good evening everyone... My name's Jonathan, I'm a newbie here on Biggerpockets. I've been analyzing deals using the calculators and I've noticed that pretty much all my deals end up with the ROI and cash flow in the negative... If everything goes as planned, my last analysis should be attached to this post, would you guys mind letting me know what I may be incorrectly analyzing? Thanks in advance.

- JG

[Steve Stuart]

Jonathan - 

That house is far too much money to be considered an investment. A very simple way to determine the max price to pay for a house is to divide the monthly rent by 1%...Therefore if the monthly rent is $2250/0.01 - the most you'd want to pay for the property is $225,000. Personally, I aim for 2% and the closer the deal is to that, the more excited I get.