Any formula would help, lookin for some napkin math here.Thanks,Chris Forza

The formula is,Purchase Price = 0.7 * ARV - Rehab Costs (some use 75% instead of 70%)In your case, in order to pull all of you money out of this deal you would need to purchase the property for 395.5k.

It plays out like a formula.

Originally posted by @David Song:@William B.

It utilizes a formula to calculate the return on investment by taking the property’s annual net cash flow and divide by the investment’s down payment, and is expressed as a percentage.One important detail to keep in mind is that Cash-on-Cash Return doesn’t include the property’s appreciation or any principal debt payments.

You need to have a repair cost calculated into your formula, looks like a minimum of 20k per unit, but that is really beside the point if you can't get a commercial loan.  

If you know just one or a few strategies, then the left side of the formula is nothing more than fill in the blank. 

From what I understand, it is a formula used to determine the true cost (in percentage terms) of financing an investment when using both debt and equity.

Perhaps there is a formula of what amount of reserve will cover yer *** as a percent of revenue based on # units?

You will be much more familiar with it and it's a lot easier to tweak as you go then it is to find an error somewhere within a sea of data/formulas that someone else inputted.