Do you have any formulas that you use to decide whether a deal is good for you?

With a lease option, I always set up the option price (formula for price) as if I were buying the property with financing.

So I basically have seen two basic formulas on these message boards to determine whether or not a property is a good buy.For rehabbing: (ARV * 70%) - repairs = Max Purchase PriceFor Renting: Rent * 50 = Max Purchase PriceI would like to buy a property to Rehab, but be able to fall back and rent it if I can't find a buyer quickly... while also having positive cash flow after mortgage and operating expenses.If I put an offer on a property for $25k and the ARV is $50k (if I put in all new flooring, paint, and redo the kitchen and both bathrooms) that leaves me $10k (According to the formula) for repairs which I could likely do if I'm doing it all myself.BUT...That would have me with $35k into the property, and I am only confident of being able to rent for $600...

As far as figuring monthly taxes, I've also seen the formula below:30,900 x 1.2% ($370)/12 = $30 ish per mo

I seem to recall some decent cashflow potential in Gainesville.TimI haven't gone by this formula because of my location, but I won't buy a property if it doesn't cash flow at least $500/month after all expenses in this market.

I just evaluated a building the other day for my company and did a *lot* of thinking/math to come up with that formula.

Figure out what rent is going for in the area where the real property is located.Figure out what type of loan payments you will need to meet the your investment initiative.Don't forget to count in maintenance.There is actually a formula that one of the other member put up.

They are going to give you the usual song and dance of they cant talk to you because it is in collections, tell them, “your debt is with them and that you don’t want your personal information sold, bartered, networked, or outsource to anyone”.

I am sure you have all sort of spreadsheets and formulas on your PC.

Not everyone can do this and not everyone can buy at the margin you used and make a profit.Again, congratulations but you really want to stick to the formula.