Now its no longer just a cash purchase with liquid capital so you shouldn't use the traditional calculations or formulas for basic cash purchases.

The standard formula for flip is :Purchase price = (70% ARV) - Rehab costNot sure if this place needs rehab to get the full ARV but most do.

In my formula I had said rent when I meant net rent... or net income.

I have several different formulas that I run to make sure all is in my favor.  

Also, you will have to file 990-T every year that you are collecting rent on the portion of rent after expenses attributed to the debt...look up UDFI but you need a tax guy for that as there is a formula.

Flip2freedom episode 77http://www.flip2freedom.com/a-3-step-formula-to-a-successful-balanced-and-insanely-profitable-2012/podcast - LISTEN TO THIS TODAY!

It is 0% interest during a promotional period (usually 12 months), and there is a fee for the service of acquiring the most unsecured credit possible...more than a consumer can usually acquire on their own (there is a very specific formula to maxing out the unsecured credit world). 

I am not a gambler so i do not count on appreciation as part of my entry formula.

Fannie and Freddie buy groups of mortgages from banks and originators all over the country.Aug 9, 2015Banks or other lending institutions ORIGINATE loans, which in the large part are "formula" loans with standard terms and conditions. 

Flip2freedom episode 77http://www.flip2freedom.com/a-3-step-formula-to-a-successful-balanced-and-insanely-profitable-2012/podcast - LISTEN TO THIS TODAY!