I wonder how these investors go from being creative, fearless risk takers to what I call “Money-Mindset-Template-Formula-Robots”.Here in Utah I have yet to find a real estate investor who doesn’t do this type of investing.

I wonder how these investors go from being creative, fearless risk takers to what I call “Money-Mindset-Template-Formula-Robots”.Here in Utah I have yet to find a real estate investor who doesn’t do this type of investing.

I wonder how these investors go from being creative, fearless risk takers to what I call “Money-Mindset-Template-Formula-Robots”.Here in Utah I have yet to find a real estate investor who doesn’t do this type of investing.

This formula is used when the property was purchased in the same year as the purchase or refinance of another property.  

This creates great opportunity as well as traps/siren songs.

Look around on BP and you'll find that MFR buyers will have their own formulas for set-asides.Typical costs are vacancy, advertising, CAPEX, landscaping, trash, any shared utilities, water & sewer, CAM, HOA fees.Look at the BP Calculator too: https://www.biggerpockets.com/buy-and-hold-calcula...

Some people suggest, such as Brian Page from BNB formula, that you can get a CBIZ policy for your rentals and thats good enough. 

For an easy numbers example, if you put 4% vacancy costs (this is the number Turner used in the last webinar I attended) into your formula when running the numbers, and the monthly rent is $1,000 and the mortgage itself is $400.

The formula for analyzing comps for an accurate house value is a discussion in itself.I know it's tempting to use those sites because investors typically get held up trying to get a realtor to run their comps.

Below is the formula that I plan on using:MAO = ARV - Repairs - Fixed Costs - Profit - Wholesale FeeWhat I need is someone who is willing to show me exactly how to estimate ARV, repair costs, and fixed costs so that I can accurately determine the price for both the buyer and seller.