I've seen cases where BPOs were done without the agent/appraiser even going into the property, so to say that the bank has factored rehab costs into the equation is many times flat-out incorrect.On many occasions, I've had the bank come back and say, "Please submit 3 bids to support your offer."

The other part of the equation is the partnership.

I would tend to stay away from places of this design, but it's just one aspect of the equation.

In regards to the equations in the financial modeling.

Educate yourself and that will take the fear out of the equation.

Since I put 5% down on my primary, I have only paid it down for a year and a half, so taking the appraisal and appreciation out of equation, I have a loan that is 92.5% LTV.

Does that affect the equation at all?

It may not be totally accurate but if your units are too small that would figure into the equation.

Look to both sides of the equity equation and understand what the purpose of the finding is to reflect.

For that matter, the exact equations and metrics are closely guarded secrets, don't let anyone tell you different; nobody knows EXACTLY, any of the metrics.