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11 February 2024 | 27 replies
But on top of that do your own comps then who knows your comps might match up with your realtorsAs for you being worried about having to lower your ARV even more because of the market I would try my best to predict what could happen by using months of supply and the days on market formula...
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10 February 2024 | 28 replies
Resist the slick talking scam artists that claim to "have the secret", or "will give you the information that no one wants to share", or "have a proven formula", etc.
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9 February 2024 | 16 replies
Here is the formula for calculating the future value of the rent.Inflation-adjusted rent at:5 years: $1,000 x (1 + 2%)^5 / (1 + 5%)^5 ≈ $8657 years: $1,000 x (1 + 2%)^7 / (1 + 5%)^7 ≈ $81610 years: $1,000 x (1 + 2%)^10 / (1 + 5%)^10 ≈ $748Because inflation is outpacing the rent, every year your buying power declines.
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6 February 2024 | 1 reply
Many people talk about MAO formula but they don't talk about how to calculate the repairs.
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6 February 2024 | 9 replies
So, I always recommend that investors choose a place they can be successful, rather than a random market thousands of miles away that they picked based on some formula.
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5 February 2024 | 11 replies
Wholesalers often:a) bring deals where the rehab costs were not properly calculatedb) ARVs that are unrealisticc) Use formulas such as ARV * 0.80 instead of ARV * 0.70d) Don't provide property information because they don't have a contract in placee) etc
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5 February 2024 | 3 replies
Cap rate, is a fundamental formula in real estate investing, particularly for evaluating income-producing properties like multifamily units.
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4 February 2024 | 9 replies
I calculated the cost of replacing the roof on my primary residence (just for practice) and ended up getting $21,000 using the formula in the book.
5 February 2024 | 2 replies
For investment purpose the formula is :(ARVx70%)-estimated repair cost=Maximum purchase target.
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4 February 2024 | 1 reply
Expressed as a %, B.O. shows how much physical vacancy the property can handle to break even, in a worst case scenario.So if the property went down to X% occupancy, the sponsor can still pay all of the expenses and pay the mortgage.The formula:(OpEx + Debt + Fees) / Collected IncomeMost investors would agree anything between 60% and 80% is acceptable.Are you calculating B.O. in your underwriting model?