Knowledge + Hard Work + Risk-taking + Good Luck = ProfitsIf you exchange "Good Luck" for "Bad Luck" in the formula, that change can result in a drastically, different outcome!

Do you know the formula that's used to prequalify a borrower?

For those that own properties free and clear, or even those that are financing, do you factor property taxes into your formulas?

It is the secret formula to REI success.

Basically, you use a formula to divide the utility costs among the tenants. 

However, I think the majority of people on here, if they went to Excel and used a few analysis formulas, will realize quickly the reason that flipping is so prominent currently is due to the lack of scalability in the real estate market at a certain point (beyond $100,000 homes) the effort vs. reward becomes questionable (not a steadfast/absolute rule, but on average it becomes more questionable...sizable risk vs reward). 

Each strategy has different numbers and formulas to determine their value.In terms of your co-worker, are you looking in the same markets as him?

Is there some kind of formula?

Do you have a formula for calculating the cap rates?

If rates go down, you pay the change in the rate x balance x time remaining on the note (it is a very long formula that I can't really explain) but basically if rates drop you will have a penalty, if rates go up then you do not have a penalty.