Hi All,I am looking for the formula to derive an offer price based on an anticipated cashflow.

The scheduled (total) income, either actual or estimated, derived from a business or property.

Because WS securitized these mortages by packaging them and sold them as derivatives to Institutional Investors who were in turn making a nice rate of return, so they thought.

.)- Payroll and G&A Expenses- Advertising Expenses- Any other expenses related to the Operation of the Asset not covered above EXCEPT Debt Service, Depreciation, Income Taxes and Specific Tenant ImprovementsNOI (EGI Minus all Operating Expenses)::break::Now you can calculate your existing CAP rateYou can also set up another file for value added opportunities that would contain Potential EGI and Potential Expenses which then would give you a Value Add potential CAP RateTo derive your NCF, subtract your Debt Service from the NOI.Hope that helps!

I derive great value from my Bigger Pockets membership. 

Make offers appear derived from detailed research.  

@Evan CruzThere is the value of the land plus the structure/building improvements placed on it.Like @Chris Martin mentioned, there are various ways to derive a property's value.

@Marcus Johnson  Negative equity is only an issue if you need to sell, and as a multi-family property the value is primarily derived from rents collected, not what a single family home buyer would be willing to spend.

There are plenty of areas where you can buy properties cheap, get nice cash flow, and some upside appreciation.Properties under $45k are likely to be mostly for cash flow though and won't derive as much of their return from appreciation.

A sale means someone verified the NOI and applied the market cap rate to it to derive the value.