@Greg Scott thank you for the clarification on the Cap formula, that makes a big difference.

You will want to purchase the home at a discounted price with the formula below:After repair value (ARV) * 70% - repairs - closing costs.

Here is the formula to use when considering a deal:First you need to figure out the ARV(after repaired value) which is what the house will be worth when it's fixed up.

The latter has been one I've worked on for a lifetime - it's been a hard one for me...for some, it's the easy part but it wasn't for me.Using the above formulas, my projects are easier and more profitable than ever.

This may not be feasible without more specifics on my taxes but perhaps a rough formula on how I could figure it out.My basic thought process with the math would be the following:For every extra $1.50 I make above $100k (but below $150k); I lose $0.75 I can write off.So here is where my knowledge really breaks down (if it hasn't already unbeknownst to me).So for every $0.75 I lose the ability to write off as a passive loss; will this cost me $0.75 or will it cost me $0.75 times my marginal tax bracket of 28%, which would be $0.75 x 0.28 = $0.21And if it cost me $0.21 per $0.75 and therefore $0.41 per $1.5, that would basically bring my OT down from 1.5x base pay to roughly 1.1x base pay?

I do this formula more and more now.  

I'm interested in real estate investment brokerage (day job), real estate investing (night/weekend job), family, friends, and Formula 1 auto racing.Though I'm only now a member, I've been familiar and lurking with BP for years.

What your formula highlights is lost opportunity cost perhaps but it certainly isn't a number to use for return on investment. 

What hurts Investors that use this formula is it does not account for Holding Costs, Backend Selling Costs, etc.I use the following formula to determine my Maximum Allowable Offer (MAO).

Does anyone know the formulas for 1).