I review each new potential project with the last, move my numbers up and down, and let the spread sheet math tell me if the deal works or not.

Make sure you do all your homework and check the taxes, HOA fees, rental comps (obviously they will vary in 2 years from now but make sure they will cover all expenses and provide cash flow).

We do have most of them boarded with a servicer but as we start to do the math.  

Also check local market for units size to rent and assume yours need some work.Off the cuff math, I'm coming in at mid 80k net, which puts you in the 6% range.

Always remember to do math analysis and try to look at your prospective properties before you make an offer or at least have a clause in the sales contract that allows you some time (about 10 days) to make a detailed inspection and possibly back out of the deal without a penalty that will hurt you too much.Good luck to you!

Account Closed Looking at the math provided - I am not convinced it matters - we can look at the statistics for the area taking into account average and median incomes but the market it showing us differently.

Hi, everyone, I'm Mike from Levittown, NY, and discovered BP while doing homework on Roofstock.

The point is that you should do your homework to verify whether or not the projected rents and expenses are on par for the building and market in which you are evaluating.

My only gripe is that there are terms in the Math portion that are necessarily related to doing the actual math problem but I think should have been explained for understanding as a better agent.

This is the exact breakdown from my lender regarding the quad I'm looking at now, but let me know if I should seek out another lender - this is the math she gave me.200,000x3% downpayment = 194,000 loan194,000x4% Teacher Hero Assist = 7760 bond grant for closing costs/down paymentP&I 1056Taxes 513 / 6158 a yearInsurance 100PMI 60PITI 1729 / moI don't have the complete run down for each potential loan for this property (however I do for a 135,000 property I made an offer on) and it's as followed:FHA 4% - 4.875% // $5,302 bond grant // $4,788 out of pocket (closing costs/down payment) // mortgage = 1159Conventional 4% - 5.125% // $5,238 bond grant // $4,188 out of pocket // mortgage = 1118