This house stayed dry through Irene here and I checked with the neighbors as well as the owner prior to this one who owned the house since 1962.Anyway, the current owner bought this house for a song via estate sale to rehab.

AJ- I just read a book that had that exact formula in it and the number were quite mind-blowing.

*Can anyone provide some solid, successfully traditional mathmatical formulas & some key strategic factors when analyzing first time multi-family properties?

I know it's probably a simple formula, but if someone can set me in the right direction, I'd greatl appreciate it.

If a typical project lasts about 6 months (it may if you're just starting out), and using the formula above he were to get 25% of the profits, he'd be earning about $4K on his $15K investment in a 6-month time frame.

I did the formula that Sean Terry has talked about on his podcast ARV x 70% = end buyer price.

They will not want to see any member with a low score (below 680, for example).For the second part of your question, they may follow that formula (which is a formula for conventional lending), but your LLC will not be able to obtain a conventional loan, rather a portfolio loan from your local bank, and they may well want to see signed leases and proof of a security deposit.

Now if these properties have deferred work or are vacant I evaluate totally differently than this formula.

Also, the formula for E5 is strange - definitely re-check that formula.

My basic return formula looks like this: (Gross Income -Adjusted Expenses) / (Purchase Price + Required Improvements) = Return on investment.Shortened up: NOI/Cost=ROIAssuming the building you are considering has no deferred maintenance and assuming the seller’s Net Operating Income (NOI) figures are correct then to obtain a 9% return you would want to buy the property for $24,151/9% = $268,344.If you choose to finance the property then the terms of your loan and the amount of your down payment will determine what your return on your invested cash or ‘Cash on Cash” return is.