If the project was 200K, the interest rate was 10%, and we had the loan for 60 days - I would owe him $20,000/12 months = $1666.66/mo and multiply that by 2 months which would be $3,333.

Can I just add the 2010 & 2011 improvements to the cost basis, multiply that amount by 50%, and report on line 19h?

Over time you debt will get paid back with your tenant's cheaper dollars and your money will multiply much faster than an all cash purchase.

I have national labor multipliers that I use in commercial construction estimating.

then add it all up and multiply by 12 to get the Effective Gross Income.

Many times fraud allows you to seek multipliers of the actual damages you suffer, it is usually treble, meaning 3x.

You have the rent there as $300, but I believe that the correct amount should be $100; if you were to multiply the offer number on the per $50 line by 2, you would end up with that offer amount shown on the $300 line (more or less), but that would have been at $100 rent since we just multiplied by 2.And every line below that is also off by $200 in that original chart if my computation above was accurate.Please post back if you agree or disagree with my finding on this.If you are wondering how I discovered this, I had one I looked at recently where rent was $1000, and offer limit was around $70K for 7% rate; comparing that to the chart shows a big difference.

How does 3.5% get multiplied to 14%?...

Multiply that by 4 or 6 folks or more living in a home (and yes, staff must be present at all times but nursing staff are generally nursing assistants, often paid a bit above the minimum wage; perhaps $10 per hour in my area)  and you can understand why this is a money making project for folks running such places.Thus, a landlord who agrees to rent out a unit to someone wishing to run a residential home out of it might wish to consider this when setting the rent for this owner.Maintenance would depend on how many residents would be residing there. 

So, we’ll leave the discussion about ROA and ROE for another time.The Formula for Calculating ROIGiven our previous points, the next step will be using the real estate ROI formula in practice and seeing how it is calculated:To calculate your return on investment, you essentially need to divide the amount of money you’ve earned from the investment—commonly known as your net profit—by the cost of the investment and then multiply that by a 100.Here’s the formula outlined:ROI = (Net Profit / Cost of Investment) x 100 It’s worth noting that there’s another way of calculating the ROI:ROI = (Present Value – Cost of Investment / Cost of Investment) x 100 Now that you get the foundations of the formula, how do you use it?