This is true but that means that you are actually paying 80 months of rent, and this equates to a GRM of 6.8 or soLearning how to do it properly!

Which equates to $3200.

In fact, I think I just formulated a new equation: Old concept + New paint job = Hedge against boredom.By the way, you sound a little frustrated.

The numbers posted are your maximum cash flow, but if you finance that'll change the equation quite a bit.

You would be taken out of the equation - no argument between you and the tenant.

The value of your building is more equated to the caliber of your tenants than the caliber of your building, at least from an investment perspective.

A large lender won't be able to fund a new loan in less than 30 days.You've probably already read this, but the "rule of thumb" when deciding if a property makes sense is if it fits the equation: Offer = 70% ARV - Repairs.Partnering up with a local who is already doing flips is a great first step.

Don't worry, just know that just because somebody else is willing to pay more, that does not equate to you having to do the same, they may have different circumstances and different strategies.

And that would be the other thing I hope you have factored into your equation - property taxes.Property taxes in Illinois and Cook County, specifically, are some of the worst in the country.I've got a house in southern cook county that is assessed at 135k and I'm paying 5,500 a year in taxes.

Homes are not such commodities like cars or picnic tables, the reason property has value arises from it's utility, functions, and in residential that equates to serving a social function as a home.