Agreed with Account Closed, @Theo Hicks has a lot of wisdom to share here.My methodology has been a combination of pulling publicly available lists and places like Listsource and AgentPro247. 

I am VERY HAPPY to add my first property, and I would like to know how those investors and experts in Real Estate in Los Angeles invest in this market and what are the best deals and tell us a little about their methodology here.PEACE, LOVE AND CASH FLOW

After I started using J Scott's "appraisal packet" methodology, I have not had a single FHA deal have an appraisal issue.

I can see your probably expecting rents to allow you to live free, so maybe that is the plan and breaking even would still benefit you.In general, the methodology here is to buy a distressed property at a price that provides immediate equity upon purchase, just like if you were planning to flip the property.

The furnace is ancient and inefficient and the house is drafty and your heating bills are huge and the garage is full of his stuff so you can't even use it. 

But I think you should be pointing this out to the OP since he is suggesting this very thing in his methodology.

Otherwise, if you just setup a bookkeeping methodology (e.g. even something as simple as Excel) you don't need to open more bank accounts which means keeping track of more a/c numbers, ordering more checks potentially, etc. 

It is an art but it requires some science and a good methodology. 

This is the last section in my new business plan methodology.

Here is what that statement should have said: That said, other than perhaps Bob Bowling, nobody here is going to fault you for factoring it into the NOI calculation, and for most people's needs, capex is something you're going to want to factor into your NOI.Again, I apologize for my mistake.For the record, this thread is about how to calculate return metrics, not about accounting principals and methodology.