(neighbors have audis)Mathematically I assume: 20% down, 3.75% interest, 10K rehab, $7K total closing costs, 8% annual maintenance ($0.75/ft annually), 91% occupancy, my property management costs (~8% gross rent inclusive of leasing costs), insurance, $750 annual "other" (tax prep, insurance).

Jeffrey if your agent doesn't understand the basic mathematical formulas that come with analyzing properties of this type than frankly you might want to look for another broker/agent that does.A local broker that is experienced if they know that 7 caps are asking price and with negotiation you get them to 8 caps and 10 caps do not exist in your area due to buyer demand then that broker/agent will try to reset your expectations, look in a different area where that can be found, or not work with you.To arrive at the TRUE CAP you have to know how to analyze the numbers.

It seems like there is a high earning potential, and I would love to be my own boss.The downside is that I am a political science major, who's understanding of taxes is nil, and who's mathematical skills end at algebra.I have always intended to go to law school.

I am reading several books on the topic and boning up on my necessary mathematics.

As a mathematically minded person, that's what I look for.

Only if you are bad at mathematics, have wife who spends to much of your budget and ONLY if he is financial planner specialized in real estate...a guy who is an experienced RE investor!

As it has been mentioned, there are many, many mathematical calculations to utilize, but not one of them, on their own, are determining factors of a decision to purhcase or not to purchase.

Hi All,    I'm scrolling through properties just so I can get my mathematical up and discovered this property where I was running comps for.

I would take a property and calculate mathematical using the THE 50% rule and the 2% rule and making a estimate what the cash flow would be .

Maybe I'm just terrible at mathematics, but I'm struggling to figure out how to calculate ROI from a house purchased via my HELOC.The numbers I'm giving below are just examples.Let's say that I find a rental property which costs $50,000.