Now...take my above post and multiply that problem by 1,977,445,336,112.11 and that's about the amount of things that can go wrong in DEV...and that's not even really a big deal.

Hence, if you owned a Studio Unit in the rental pool, you share of the proceeds for the month would be your floor area, example 30 square meters, multiplied by the dividend of 1,056 pesos.

Here would be the formula you should factor this deal with and you decide.ARV (use only sold properties for your values, do not use the local asking price)multiplied by 70% (Thsi can be somewhat flexible if you arent using hard money and the deal warrants a deviation.

Are you sure that it won't appraise, because going off of an income appraisal $1050 in monthly rents for a $52,000 property is a gross rent multiplier of 4.2.

In reference to my personal "magic" formula for rentals, it is 2% of sales price should be the monthly rents, or taking it from the other side, I am looking for a monthly Gross Rent Multiplier (GRM) of 50, or more commonly expressed as an annual GRM of 4.2.

Take the After Repaired Value (ARV) or what it will sell for all fixed up and multiply that by 70% or .70 .

1% of sales price should be the rents is another way of stating a monthly Gross Rent Multiplier (GRM) of 100.

There is the Sales Comparison Approach which is based on similar recent sales, the Cost Approach which is based on a value of the land and the cost to replace the existing improvements minus depreciation, and the Income Approach which is based on market rents and a Gross Rent Multiplier which is detemined through market research.Your other statement that banks will appraise the property right around the sale price even if the price is 200 and it's worth 500 is really disturbing.

I then annualize my cash flow (multiply it by 12), so I have $6,000 per year cash flow on the property.

Meaining you take the monthly rate and multiply it by 12.