Map that behavior and translate that into your ad.

For seasoned, grizzled investors who plan to keep their money safe, that translates to yield means nothing if the principal is in jeopardy.By reducing my max LTV to 50% (including costs) I've eliminated most all investors who are unable or unwilling to offer property that attracts my money.

Using $100,000 cash without positive leverage translates into one scenario of how many deals you would have to do and a target rate of return you have to achieve to get there in a certain time frame.

It's an over/under configuration (3bdrm up, 2bdrm down) with a rent-roll of $2400/mth and an operating expense ratio of 34%.The prior owners had undertaken some cosmetic rehab {& made some scary alterations to structure in the process} and had decommissioned central high efficiency gas furnace and converted both units to electric baseboard heat.The cost of heating the building had actually increased by ~15%, but it was the tenants problem.

Thats 800/mo more in rent and your cost to build is only increased by 80k which translates to 400/mo more in a mortgage payment -which also means you'd increase your net profit by 400/mo (well less when you take out vacancy).But still, you get the idea.

You or your borrower may get hit with higher interest rates, higher interest rates at a fixed payment amount means less in the loan value that translates to a lower price.

In Dutch it's "in het land der blinden is éénoog koning"No idea if this saying exists in English.. but roughly translated.. in the land of the blind, the one-eyed guy is king.Basically he/she who has what is sought after makes the demands.  

Hi BP,I need help translating and understanding co-insurance.

might also depend on how much profit you like to make -if you can add another 100 Sq Ft at $90 / sq ft ( I have no idea what construction cost in L.A ) and that 9K translates into another 70k then it may be well worth the effort to add on the the extra rooms and add another bath assuming you have the money to do the rehab , the time to complete the project, and the ability to carry the property till completion. 

Example (Dr = Debit, Cr = Credit):Purchase the property and rehab:Dr: Inventory - Acquisition Costs - $20,000Dr: Inventory - Rehab Costs - $80,000Cr: Cash (or loan) - $100,000Selling the property at a gain:Dr: Cash - $120,000Dr: Cost of Goods Sold - $100,000Cr: Inventory - $100,000Cr: Revenue (Sales) - $120,000Selling the property at a loss:Dr: Cash - $90,000Dr: Cost of Goods Sold - $100,000Cr: Inventory - $100,000Cr: Revenue (Sales) - $90,000In the third journal entry, your Cost of Goods Sold (an expense) exceeds your revenue which will translate to a net loss on your P&L.