If you plan to rent the approach to value that you need is the income approach with rent multiplied by a gross rent multiplier.

Nail down the ARV, multiply by .7 to .75, subtract your estimate for rehab (since your new, add a 25% - 50% buffer), then subtract your fee.

However, when you add PM and CapEx savings to the Operating expenses it drops your NOI tremendously and then when you multiply it by the Cap Rate you get a much lower valuation of the property than the listing price. 

Divide that by 12 months and multiply that by the 4 months I held the property and you get $267.

I’m starting to bang my head against the wall trying to make anything pencil not knowing exactly what the property taxes will be but figuring it is the combined rate on the tax assessor’s site multiplied by the acquisition price.

When the reward is multiplied by multiple properties the bumps are easier to survive.It is not a question of whether one property can be profitable it is more a question of whether one property is worth the effort based on that profit.

Or if you put the $600K into a high yield savings account you could get 1.5% in FDIC insured accounts.Of course the best way to multiply your money would be cashing out of CA and investing in higher cash flow areas.

Multiply that by 4 (since your eligibility backs 25% of your purchase price) and you’ll have the maximum amount of house you can purchase without a down payment.

In a single family home, if it was vacant one month during the year, that would be a vacancy rate of 8.3%.Now what you do with that percentage is multiply it by the Gross Income (the scheduled annual rents) to get the Va- cancy Allowance.Vacancy Allowance = Vacancy Rate x Gross IncomeSo if the property takes in $72,000 a year and your Vacancy Rate is 5%, your Va- cancy Allowance is $3,600."

So multiply those numbers by 800 to get the cost that you would have to come up with to start your own.