Yes i agree with separation of electric utilities, but when I buy multi units without separated utilities i subtract the cost of separation off the price.

Rents around $500 are where that rule seems to work reasonably well, so at $600 - close enough.total monthly gross rents / 2% = 50 times rents => 50 x 2400 = 120Kfrom that, subtract repairs: 120K - 50K = 70KMax offer would be 70K, so start lower.Lots of other analysis formulas that could be used - the point is to try to get a number you'll be comfortable with paying so that you are almost guaranteed to be profitable (can only be profitable if good paying tenants are placed in the units).

In some places unimproved la d would be worth less so some start with that as their land portion and subtract it from your total purchase price plus rehab-Steven

Travis ElliottA good formula to get a ballpark estimate, which is similar to Sabrina's but accounts for empty lots is: park value = (# of occupied lots x $lot rent x 60) + (# of empty lots x $lot rent x 30) so you're looking at (14x$250x60) + (30x$250x30) = $435,000Then you'd need to subtract the required repairs and add in the value of the home.

This will be a negative number, since your payment is reducing the balance of the loan.Now, if you want to know the balance 10 years in the future, use:=fv (0.08/12, 10*12, payment, $100000)"payment" is from the first calculation.Now, subtract the remaining balance from the starting balance, $100,000 in my case.

If non-RE, the loss in box 1 of the K1 (1120 S) would get subtracted from your bottom line income on the first page of the 1040.

Now there is a ton of competition from other investors, wall street, and even some retail buyers trying to get a good deal. 70% rule means that you take the future sales price or ARV of the home, then multiply it by .7, then subtract your rehab and carrying costs and this number is your maximum offer to make the deal work.

Include the income on the s-corp subtract expenses.

Then subtract repairs.

. *** Utilize 80% of the ARV in your calculations.2.Establish Days on Market through market research.3.From that – subtract repair costs4.From that – subtract finance charges5.From that – subtract holding costs6.From that – subtract RE commissionsWhat is left with is what I can pay.