Even then, it needs to be calculated using the same methodology in each instance to provide an apples to apples comparison.  

My current role invovles analyzing loan profitability, assesing portfolio risk and designing new process/methodology to maximize profits for my employer. i work scpecifically with mortgages, so i have seen and gain a deep understanding on how a mortgage work and the profits behind them. that said, it made me realize that if i couldn't be a lender i could probably an investor or whosaler to maximize my cash flow. i plan to be financial independant by the time i am 45. i am now 32, so i only have 13 years left the clock is thicking!

And so on with the rest of the home.We do these a lot in the Bay Area where local politics make it nearly impossible to build, so our housing stock is mostly ancient. 

When I use this methodology, on top of my capex/RM analysis, I can't see how 99.9% of turn-key opportunities could possibly make sense.

But how do you think the basic methodology works?

That said, even for places that fall out of the price ranges, the methodology in the book still holds...

The other methodology was $150,000 at 65% or $97,500.  

Hey,Just checking out this forum after reading a couple Bigger Pocket's books, the ancient "Real Estate Loop Holes" and more recent "Investing in Real Estate with no (or low) Money Down".  

If you do collect the rent (delivered or otherwise) and they have any outstanding previous late fees, apply the payment first to all other charges, if your lease includes that wording.Then give notice and file for eviction for the shortage.At least that is my methodology, as in Texas a property manager can only represent a landlord in court for eviction on unpaid rent and holdover.

All units need some improvements: flooring (very dirty carpets), kitchen (ancient cabinets, ugly and cheap countertop),… We plan to have people in two units move out and then renovate.