with increased prices causing lower cap rates etc I am wondering what there formula is for buying properties in the current market?

There was a song a dance about long it was going to take and how the job needed two people.

Is there a standard formula used to calculate the cost of the equity?

Risk actually has a mathematically formulas attached to it, that I have not seen one Real Estate Investor ever even look into.

Is there a formula for me to use to see how much cash flow I could possibly have coming in?

And even if the appraiser does raise the value, the underwriter can do whatever they want -- it's their butt on the line if the loan can't be sold.For conventional, I believe they have some formulas they use for how much you can sell it for based on how much you bought it for and how much you put into it.

But a more realistic estimate of cash flow is:cash flow = rent * 50% - P&IIf your property works with that formula, and you have some cash in the bank for hiccups that occur soon after you buy, you'll do OK.

I've looked at possible expenses related to this, but wonder if there is a 'simple formula' to quickly vet the potential of a property?

If they think they have $150 in cash flow using that formula on a $1000 rental, they are probably actually in the hole by $150 a month.With a handful of units you can be lucky and come close to "rent - PITI".

Its has to do with the MOA(maximum offer allowed)/MAO(maximum allowed offer){same thing} formula. 70% ARV is the loan to value used by most all lenders.