Many people use derivative "roll up" variables, such as net migration, as substitutes for lower impact subjective inputs that are hard to quantify.

(that wasn't a direct quote but the concept was derived from this book).

If possible, I'll like to shadow you on a deal or two just to see how you come about deriving your numbers for offering price, ARV, etc.

. - I derive some benefit from having the properties nearby.You're closer to Sacramento and Modesto.

These are derived from Gross Operating income.

The value you derive from all deals is unique to you and may not be measured in money alone.

I'm looking for input/suggestions on the model I use to come up with an offer priceSample:List price $135,000Monthly rent               $1,350Desired cashflow:     -$200 (Concept derived from the book Profit First)Vacancy @8%:         -$108Maint. @10%:           -$135Capex @10%:          -$135Prop Mgt@10%:      -$135Insurance:                -$37Taxes:                      -$190--------------------------------------------------------Total for P&I:            $ 410Use website http://1728.org/calcloan.htm and solve for AmountInputs:Years: 30Rate: 4.25%Payment: $410----------------------------------------Offer Amount: $83,343.52 (subtract any rehab/closing costs from this number if necessary)The one item this model doesn't take into account is the neighborhood.

Instead of a passive activity loss, here we will be talking about a passive activity credit - that is a credit generated from a passive activity (i.e. solar panels on a rental).The credit generated from passive activities will only offset the tax generated from income derived from passive activities.

The Solo 401(k) also has the advantage of being more favorable for real estate investments using debt-financing such as a mortgage - as the 401(k) is exempted from a small tax called UDFI that an IRA would pay on the percentage of income derived from the borrowed money.So, as you continue your research and get feedback here on BP, think about what type of program will best suit your needs and be sure to ask questions along that line.

Because so much of your return comes is derived from income - which is inherently much more stable the property values - your total IRR would still be over ~12% if you sold at peak 2009 cap rates.