I analyze from the investor's pov as opposed to the typical wholesale formula and would love to connect with you and grow together!

The loan biz has followed this formula for decades and there is a good reason for it!

And there's a time value of money formula or discount rate formula you can run to compare the 2 scenarios. 

I always got my deals and best deals from MLS or wholesalers who used the proven formula of 70% of ARV MINUS REPAIRS MINUS WHOLESALE FEE.

The formula dividing the taxable and non-taxable portions of the principal is not for manual calculation.

You might need to just start playing with the formula to see how it goes.

What is the formula (steps)  that I should look for? 

Does the 1:1:1 formula work in LA?

For a $450,000 property with a 6.625% interest rate, the principal reduction over 5 years can be calculated using an amortization formula, revealing a significant amount of equity built through loan paydown alone.Take a look at the table below.

When working out the money side, remember this formula: Cash on Cash Return = (Annual Rental Income - Annual Expenses (including HELOC interest)) / Total Cash InvestmentExample:HELOC Used for Down Payment: $50,000HELOC Interest Rate: 6% (This can vary)Annual HELOC Interest Expense: $50,000 x 6% = $3,000