So, in the example above of a 15% interest and 5% points, that is equivalent to a 35% interest rate with no points.

The following shows the summary of the form 8835 (I believe equivalent of schedule E)For 2008Gross Rent 16500Total expense 20400Total loss 3900For 2009Total Rent 19500Total expense 31000Total loss 11500The numbers above are approx.Also currently out of three working units only one unit is having tenant.

After 8 months with no end in sight, we cancelled and bought an equivalent REO. 2011 my goal is to get maybe another, but I'd first like to build up my cash reserves first.

Two equivalent houses -- one empty and one nicely staged -- are not equivalent at all; the staged house will sell much, much faster, and sometimes at a higher price.

So just because someone says they need to get a loan from the bank that doesn't necessarily mean you should move on.I always communicate that your buyers need to be cash or cash equivalent buyers.

If you are wholesaling you need cash or cash equivalent buyers (hard money or commercial loans/lines of credit).Trying to wholesale to conventional buyers is a nightmare, and doesn't work most of the time.

When purchasing an REO property, have you had more success getting a better price by working directly with the agent that listed the property with the bank, or do you feel that the negotiation is equivalent regardless of which realtor you use?

So basically ROI is equivalent to CashOnCashReturn?

Echoing Steve and Jon here, wholesaling is selling to cash or cash equivalent buyers.

You can try to work this out by finding pairs of very similar properties that have an equivalent difference to the difference between your property and your comp.