I actually did use the multiple approach to derive the compressed equity amount I just wasn't aware that this way the way to this.

There is nothing to be derived from reading my profile.Mine is empty, false or misleading to protect rather than promote my business interests.Aside from the actual content of my posts there is no way to assess my opinions.

Hope this helps.MetricAnnualMonthlyPer Unit/MonthList Price:$210,000--Derived NOI (16% Cap Rate * List Price):$33,600$2,800$400Derived Gross Rent Assuming 50% Expense Ratio:$67,200$5,600$800Derived Net Rent Assuming 5% Vacancy:$63,840$5,320$760

Figure out a return that you'd be comfortable earning for this project and its associated risks (see cap rate derivation explanations if you want to know the particulars of how to determine this) and make sure that you don't pay over that amount.

Great question and good comments of your own.Frankly, I love stocks and have done well in the market, but, I love RE because it derives wealth creation methods as follows:1.

This derives from the fact that a savvy investor or good negotiator can convince a seller to sell their asset below the going current market value.

You think you have the right answer to the question but you can't show how you derived the answer.

., CoC = all the income derived from the investment per year, divided by your initial money down + all subsequent expenses in that same year, x 100 (expressed as percent).eg.

My previous background was financial and derivative trading (in London).

A good friend of mine is in finance -- trader/equity analyst at a prominent broker/dealer -- and he's able to derive all kinds of economic information from the Census/Labor stats.Hope that helps.Anthony