I think I was looking at the Investment Returns, that was giving me a negative calculation.

Averaging these, I calculated ARV to be $174k.

Sometimes they still have the garage door and drywalled the inside... meaning that they did not do a foundation on the garage door line : they did not use a deputy inspector, they did not use the appropriate hold downs (metals) for structural integrity, they did not use the right calculations for framing (ie rafters for ceilings ) that are often changed in a garage conversion... did not use proper headers for windows and doors... etc etc I have been faced with these a lot when representing the buyer and I would : 1.

Now the 9% doesn't seem to be a terrible deal, but then I calculated the risks involved.

If i am holding onto this property for a definite period of time, I also will want to calculate the IRR to see how it stacks up with other potential investments that I have run into.

If you reported a lot of expenses and showed a loss, then the loss will be treated as a liability in DTI calculation.

So, if I am a buyer, I will calculate that risk into it and will charge MORE for the risk.

If you borrow against the equity, you'll need to include that payment in your calculation, as well.You make 3x the average income for Pennsylvania at the age of 32.

Understand the fees involved and calculate the total cost for an entire year of management so you can compare the different managers.

The important part of investing is the calculations of a deal, having capital, and a W2 job that will help you get loans.