If you got the first house for a song and a dance it would probably be better financially just because you're getting a better price on the skeleton than you would in a fresh build.

Most sellers know their properties are worth a lot more than they were four years ago, so they won't sell for a song.

Instead they've somehow been brainwashed into rinse-dry-repeat formulas that lack foresight.

For rental properties in general maybe looking at (debt+proposed PITI)/(wages+(75%*rent-current PITI)) might be the formula that would be more accurate. 

I can explain what I plugged in for the Expected Value formula if need be.Thanks!!

How will the formula for Capital Gains be affected after a spouse passes away?

The magic formula is portfolio size x time.Selling does not move you forward.

Pay the bill yourself, then reimburse yourself by charging the tenants based on a formula.

Okay, so everyone states there's a formula to follow in real estate investing.

.### Calculating Annualized ROI (CAGR)The formula for CAGR (Compound Annual Growth Rate) is:\[ CAGR = \left(\frac{Final\ Value}{Initial\ Value}\right)^{\frac{1}{Number\ of\ Years}} - 1 \]In your case:\[ CAGR = \left(\frac{\$601,816.40}{\$235,000}\right)^{\frac{1}{30}} - 1 \]Let's calculate this:\[ CAGR = \left(\frac{601816.40}{235000}\right)^{\frac{1}{30}} - 1 \]\[ CAGR = (2.56)^{\frac{1}{30}} - 1 \]\[ CAGR \approx 1.0303 - 1 \]\[ CAGR \approx 0.0303 \text{ or } 3.03\% \]This means your annualized return is about 3.03% each year over 30 years.