Good Afternoon BP's,Two-bedroom, Single-family house, listed for $110,000 (rounded), with an estimated mortgage of $680 (rounded).

For example if you paid $360,000 for a property with estimated land value of $60,00 then the structure value is $300,000.

Hello, Albert Lubin, the 50% rule is a general guideline used by real estate investors to estimate the operating expenses (OpEx) of a property as a percentage of Effective Gross Income (EGI).

Run some estimates now on potential future earnings if, at some point, you didn't live in the house and instead it was used as 100% rental.

One more thing, at my work, when we do cost plus we have to come up with an estimate and get approval to exceed the estimate which is something I would suggest adding to your proposals.

For a $300,000 property, this could be $6,000 to $15,000.Mortgage on Rental Property:Loan Amount: $240,000 (assuming 80% financed at 4% interest over 30 years).Monthly Payment: Approximately $1,145.Other Expenses:Property Taxes: Estimated at 1.5% of property value annually ($4,500).Insurance: Estimated at $1,500 annually.Maintenance: Estimated at 1% of property value annually ($3,000).Property Management Fees: Assuming 10% of monthly rental income ($2,400 annually if rent is $2,000 per month).Vacancy and Turnover Costs: 5% of annual rental income ($1,200).Total Initial Investment and Annual Operating ExpensesInitial Investment:Total Borrowed from Equity: $150,000Down Payment for Rental Property: $60,000Closing Costs for Rental Property: $10,500 (average)Total Initial Cash Outlay: $70,500 (initial investment from equity) + $10,500 (closing costs)Annual Operating Expenses:Property Taxes: $4,500Insurance: $1,500Maintenance: $3,000Property Management Fees: $2,400Vacancy and Turnover Costs: $1,200Total Operating Expenses: $12,600 annuallyExpected ReturnRental Income:Assuming $2,000 per month, annual rental income = $24,000.Net Operating Income (NOI):Annual Rental Income: $24,000Minus Annual Operating Expenses: $12,600NOI: $11,400Debt Service:Mortgage Payment on Rental Property: $1,145 monthly, $13,740 annually.Total Debt Service: $13,740 (rental property) + $8,592 (equity loan) = $22,332 annually.Net Cash Flow:NOI: $11,400Minus Debt Service: $22,332Net Cash Flow: -$10,932 annually (negative cash flow initially due to high debt service).Cash-on-Cash ReturnInitial Cash Investment: $70,500Net Cash Flow (first year): -$10,932Cash-on-Cash Return: Not applicable initially due to negative cash flow.Long-Term Appreciation and AdjustmentsProperty Appreciation:Assuming a 3% annual appreciation, the property value could increase by $9,000 annually.Rent Increases:Assuming a 2% annual rent increase, rental income will rise, improving cash flow.

I assume zestimate or other online estimating tools are inaccurate.

correspondence between me and Lane.Giles,One of the biggest misnomers is that the tax benefits on syndications are worse than owning rentals which is false especially when doing a cost segregation.I just got back the estimate for Aubrey Apartments in Houston to which we will likely implement in year 1 of the deal.Based on our consultant's estimates, it looks like for every 100k invested, passive investors look to get back 58k in losses in the first year alone.Assumptions: 10M of losses first year, 70LP/30GP split assuming total capital raise of 12M... 10/12 x 70% = 58%.

Typically, banks, funds, and traders will have an expectation or estimate on key economic data releases, often created through sophisticated, complex financial models.

Building on @Nathan Gesner post:If I interpreted your post correctly and neither an estimated or final disposition has been mailed, return the entire deposit and fire your PM.