This means that they are going to look at the ratio of the Net Operating Income (NOI, or income - expenses) divided by the monthly debt service (your monthly payment).

Can you sub divide either lot?

Will states that upon passing, house is to be sold and proceeds divided 6 ways benefitting her 6 total grandchildren.Problem: 4 of the grandchildren and their mother still live in house, and have been paying as rent what can be afforded - about 1500/month.

For instance, if a property worth $10 million brings in $100,000 per door, the cap rate is $100,000 divided by $10 million.To quickly size up a deal, I rely on the 1% rule: if the price is $100,000 per door, I expect to see at least $1,000 in monthly rent.

Divide how much extra monthly rent the improvements may lead to into the $30k cost to determine how many months it will take to recoup the investment. 

Add that to the DP (20%), which actually means divide the maximum loan by 80%, and you have your maximum offer.I don't negotiate.

Or divide it up 50% in real estate and 50% in a combination of S&P500, bonds, T-bills, Master Limited Partnerships or other public markets.

That means in this case you would need to translate that "5" into actual dollars of cash flow per month, then multiply by 12 for the year.Now divide the cash you put in (actual cash, not the percentage) and that will tell you how long it will take you to recover your cost, and where that "cash flow" is now real, and not just a recovery of cost.So, on these cash flow deals (especially the ones you put in 30% of the purchase price), how long will it take you before you recover your cost (the cash you put in,...the DP)?

Hey Rodney, some of my clients this year are purchasing single family homes and then dividing the house into multiple units for cash flow.

The plan is to get the home producingincome and then begin dividing the 20 acres into building lots.