This is the crux of being successful in wholesaling, work the equation backwards from the buyer telling you the location for the houses.

In my experience taxes should be factor in decision making, but just a small piece of the equation.

I had it financed at 70% LTV which equated to an amount greater than all my expenses into the house including purchase price, fees, and rehab.

Keep Realtors out of your wholesaling equation.

The way that i do it equates to about 8/10's of a % or $8 per $1000 transferred.

The equation would look like: ARV-minus-flipper's markup-minus-repair cost=equals=what you should sell for.

I've been on both sides of that equation having been an owner hiring a PM and I previously worked at a PM.

Sometimes an investor's view has more substance than the appetite of an agent who may mentally inflate the value (sub-conciously) because moving the property equates to getting paid.I must admit, whole-heartledly...

Hi everyone,There so many formulas / equations when it comes to buy an income property, such as cash on cash return, cap rate, debt coverage ratio, break even ratio, gross rent multiplier, price per unit, price per square feet, 50% rule, 2% rule, etc.

Just wasn't sure if I should include my monthly management as part of the equation or as a separate line item.