The capital required to attain a certain surplus cash flow is a function of:1) Property profitability (net cap rate after expenses)2) Leverage (debt percentage)3) Cost of capital (principal+interest percent of purchase price).I derive the following formula.

As you know with Correspondent (banked loan) we do not charge points and the PAR rate is derived from margin based on the branch bucket, Banker bucket - similar to your loan officer compensation plan.

I really believe he derived his price by simply applying market appreciation to my purchase price and made the comps work to those numbers (which in this case was really bad because my appraisal at purchase showed I was purchasing $40k below value).  

There is no reason to compute this as the only cap rate that is real is derived from closed sales.

Value ceilings can go up only with extreme changes in local economy or buyer's desires,The way I see residential investing and it's value is that property value is derived from actual data, local economy factors and buyers desires.

Also, your allocations for expenses are all static figures derived from some %.  

Hi @Princeton Washington I cook a lot of Mexican food all of experiments are derivatives of that usually. :) I think my favorite place I have been to so far was most likely Brazil some of the warmest people I have met so far.  

I'm a serial tech entrepreneur and have retired and make my living by deriving income off of my investments.

I hold an MBA from Hofstra University and was a trader of financial and commodity derivatives in London, Houston and Amsterdam.I am really more a buy and hold REI.

As example, my current rehab that is on the market at a price I derived from visiting with the neighbors.