What you now have to do is to analyze properties in your target area to figure out the expenses, and then work backwards to derive the maximum purchase price.

I'm puzzled and would appreciate clarification on how this COC percentage is derived.

OR if you both are still willing, keep going with the previously mentioned strategy or some derivation of it until you don't want to do it anymore.Good Luck!

Its unexpected market dislocations - 2007 it was the unexpected size of derivatives markets that so few people understood.

Meaning a Baymont Inn is going to derive far lower overall value than a Hampton Inn.Second piece of the puzzle is financing.  

Not if you understand the income is not used to derive the value on less than 5 units. 

As you pointed out, in your above example, it's not clear on what the 6%-10% to GP or the 10% 70/30 split is derived from.

To Travis: I love the equation that you and your wife have derived for your rental property portfolio. 

The derivation of income and expenses needs to be treated in “chunks” that can be detailed on a supporting but separate worksheet to provide the necessary data to backup the chunks.I’d be happy to give you my thoughts on your work to date if you send it to me.Best of luck with your work

But upon my research, it seems to be some form or derivative of another hard money product if not the same thing just a different name to catch the consumer's eye.