In a basic sense, this value is derived from applying a cap rate to a stabilized NOI.

I don't know how much anyone on here has studyed the intricicies of some of the financial products such as the various derivatives and credit default swaps, these products are absolutely fantastic on paper, I mean the math is beautiful...At the end of the day it is real life that takes effect and the missing metric is risk.

If someone is giving you an insurance "estimate" based on their experience, ask where they invest or which county they are deriving their figures from.Concerning property taxes - was your purchase price under the tax appraised value? 

This is not even considering the tax benefits nor the income derived from that asset over time. 

guess you could buy the same insurance through a large down payment, but earning it value add is easier than earning it W2 derived down payment for me.

Be very careful applying "private lender" status or thinking there are no limitations, the issue of your tax status can put you into a lender's position, when a significant or most of your income is derived from lending, you are then seen as being in that business.Don't confuse a "private money lender" with a "private lender, just using your money doesn't make you a "private lender".You're not a private lender if you advertise or answer solicitations or engage in syndications, arrange financing with other people's money or pool money, unless you're SEC compliant and then you're an investor not a lender. 

The individual determines whether or not value is derived from the program.Guru bashing seems to be a sport enjoyed by many on this forum, and I must admit I sometimes find it entertaining. 

But this is another topic...).I believe here is my main challenge: part on my income is derived from a company I own abroad.

Account Closed you're absolutely right, it's all about cash flow... but it's not too difficult to derive someones cash flow from the gross rents- and I didn't want to convolute the purpose of this post (commending someone for their performance) by turning it into a pro forma sheet.Go ahead and take those rents and subtract all of your standard pro-forma operating expenses, and reserves.

If 4 units or less than you really need to use comparable sales to derive the value of the property, as this is what the banks will use.