Now multiply that times 6 (6 x $50k = $300k).CCR is infinite, since you never actually spend the money...it comes back to you with every refi.Joe VilleneuveREcapSystemA2REIC

Personally I find the prospect of having someone else pay my mortgage nice... multiply that many times over where I am providing a good service in the form of reasonable rates and ethical land lording just makes sense. 

I take the price of the property and multiply by 23% (20% down 3% closing costs) and add any repair costs I expect to that, getting my expected cash outlay. 

I calculated my mortgage payments for 285K and they are 1530 with a 5% interest rate for 30 years assuming I dont give a downpayment. 1530 multiplied by 12 gives me a total of 18360 for my years mortgage.

Did you do some weird math genius thing where you multiplied by a number that would give you the same answer by subtracting the Rehabber's Profit?

I prefer to use GRM for this determination.For the sample property you listed, the Gross Rent Multiplier (GRM) is 7.66, which is fairly good for the area.

In addition, multiply the fair market value by either .65/.70/.80, then utilize your current formula for wholesaling.I really hope that you found this to be helpful in some way.This has been an information nugget.Anthony

Your thoughts are appreciated.ThanksChrisFinancial ProjectionsPurchase price 100,00025,000 down payment75,000 5 year hard money loan at 5.99 per500 in repairs the home has been completely rehabbed and has a 2 year warrantyTotal Initial Equity: $35,000.00Gross Rent Multiplier: 8.55Income-Expense Ratio (2% Rule): 0.95%Typical Cap Rate: 8.00% Debt Coverage Ratio: 0.48%ARV based on Cap Rate: $105,287.5050% Rule Cash Flow EstimatesTotal Monthly Income: $975.00x50% for Expenses: $487.50Monthly Payment/Interest Payment: $1,449.61Total Monthly Cashflow using 50% Rule: -$962.11Analysis Over Time Year 1 Year 2 Year 3 Year 4 Year 10 Year 20 Year 30Total Annual Income $11,700.00 $12,051.00 $12,412.53 $12,784.91 $15,265.85 $20,516.02 $27,571.82Total Annual Expenses $20,672.34 $20,737.88 $20,804.73 $20,872.92 $3,916.32 $4,773.97 $5,819.44Total Annual Cashflow -$8,972.34 -$8,686.88 -$8,392.20 -$8,088.01 $11,349.53 $15,742.05 $21,752.37Cash on Cash ROI -32.04% -31.02% -29.97% -28.89% 40.53% 56.22% 77.69%Property Value $114,950.00 $120,122.75 $125,528.27 $131,177.05 $170,826.64 $265,288.54 $411,984.99Equity $53,491.64 $73,591.67 $94,688.18 $116,830.72 $170,826.64 $265,288.54 $411,984.99Loan Balance $61,458.36 $46,531.08 $30,840.10 $14,346.33 $0.00 $0.00 $0.00

I do not know about your state, but in CA, we can't really stop workers from forming their own company, quitting and working for somebody else even your competition.As you have mentioned, it takes THAT much of your time, and you do everything fast because you don't have to think twice, take the "time consumed" on what you do now, multiply it by 3, that is how many hours you will be paying for them to do it. 

One thing you could do if this is a dealbreaker for you and the numbers is before cancelling the contract, figure out the average price/SF of the recent sold comps, multiply that number by 500 SF, and ask for a reduction in price of that amount.