The second is derived from the calculator using the stated NOI ($38,121) dividend by the Purchase Cap Rate (rounded to 9%) which gives you a Cap Rate based value ($423,566.67).3.  

How is your income derived, W2, 1099, Self Employment?

@Annie DickersonSounds like you've derived your answer.

A lot of the issues were derived from our equity group partner in reviewing the insurance policy Kevin provided along with the confusion on the registration of the parent company not having a foreign registration.

I'll break it down section by section.Purchase Price Information:  I understand how you derived at $95K (not the price I would pay ...

I understand that the website does all the calculations for me, but being an engineer I typically learn better through actually messing with equations, seeing where they're derived from and applying them myself.

The very concept of a tax inside of an IRA scares a lot of folks off from even thoroughly researching the concept... which is their loss.When an IRA uses debt-financing, the percentage of the income that is derived directly from the IRA capital is fully sheltered. 

I’m going to lay out all the numbers here and hopefully some people will chime in with their thoughts. 1 bed/ 1 bath condo in north New Jersey (~10 min bus ride to midtown Manhattan)May 2016 Purchase price: $270kDown payment: $54k (plus 10k in closing costs)Current market value (best estimate): $325kMortgage remaining today: $205kCash flow per month as rental: $300The way I am looking at this is I am deriving my “net equity” (net of selling closing costs) to be:$325k x 94% = ~305k, less 205k (mortgage remaining) = $100k net equity.Therefore, my RoE on an annual basis is $300 monthly cash flow x 12 = $3,600 divided by my net equity of $100k = 3.6%On one hand, it seems like I could use that $100k elsewhere and likely beat 3.6%.

This basically was derived out of the 2009 meltdown.  

Working on properties is not always a lot of fun, but I derive a great deal of personal satisfaction from it.