Benjamin Sulka
House Hack Numbers Not Working (Follow up with a deal analysis)
2 April 2024 | 4 replies
Cash-on-cash return = Cash_Flow / All_In_Cash_InvestmentYour formula is calculating NOI / All_In_Cash_Investment, which completely ignores Debt Service and Capital Expenditures.Better you make these adjustments now in a spreadsheet, rather than later on in your bank statements!
Christopher Mooney
Real Estate By The Numbers - NOI calculation
2 April 2024 | 7 replies
@Christopher MooneyHere’s my take …Looking at the book in the NOI section: Cash flow after taxes = Cash flow before taxes – Income TaxIf by “Net Income” you mean “Cash flow after taxes”, we can restate the formula as Net Income = Cash flow before taxes – Income TaxThe formula applies at both the portfolio level and the individual property level.Since you have taxes of $3,000 at the portfolio level, and if you know the “Cash flow before taxes” at the portfolio level, you can determine the portfolio “Net Income”.If you knew the “Income taxes” and “Cash flow before taxes” for each individual property, you could calculate “Net Income” for each."
Larry Cersosimo
What is a good cash flow
3 April 2024 | 36 replies
This means that the income from the property can pay its expenses and generate a pre-tax profit.DSCR formula: Add up the expenses tied to the property (monthly taxes, monthly insurance, monthly homeowners association dues if applies, monthly principal & interest payment.
Barrington Smith
Need rehab advice
2 April 2024 | 20 replies
I would suggest you do some more research on the formulas posted above.good luck!
Justin Strait
Anderson Business Advisors
2 April 2024 | 27 replies
My huge issue with these guys (and Wealthability) is the business formula appears to be the following:Master guru sucks you in with their knowledge via books, podcasts, Youtube, seminar.Master guru tries to hire minions to re-create his success (it underdelivers)Master guru tries to scale too fast and becomes more of a salesman (clients further suffer)I am interested in learning more about this and can deal with negative reviews but the negative ones outweigh the positive ones online for Anderson and in 2023 no less, so this is an active problem.
Palani (Pono) Wright
How to calculate insurance when analyzing deals
31 March 2024 | 12 replies
Kind of a rookie question but is there a site or a universal formula to estimate insurance when analyzing deals other than contacting a insurance agent in the specific market?
Brandon Gamblin
Can someone help me clarify this idea about buying multiple properties?
31 March 2024 | 2 replies
There is no set formula or math equation or even a good definition.
Nate Sanow
Average Net Cash Flow ? (Per door)
1 April 2024 | 98 replies
Formula's and calculations certainly can predict or provide recent averages, but when the rubber hits the road we all want to know the exact amount of money in our bank account.
Jordan S.
Section 8 - is rent negotiable
30 March 2024 | 17 replies
There is no obligation of a Sec 8 administrator to approve rent levels above the FMR formula or even below it, they may consider housing inventories and the property being appropriate for the family.
Gigi Merritt
The Right One
30 March 2024 | 2 replies
It didn’t work out for me because according to the formula my “coach” provided, this deal did not include at least a 10% profit, and I didn’t care that it was a 6% profit, it was a good profit, and it wasn’t going to be the only deal, but I pitched it to the private money partners I was given access, but It wasn’t jumped on fast enough before another investor snatched it up for $1.3 mil all cash within a couple of days of my walking it.This was the problem with this “coaching” program… all my potential deals fell through because there never was at least a 10% profit, so I couldn’t get attention quick enough from the private money partners before another investor came in with all cash.