Hi All, We're considering our first private loan and have calculated our costs based on an initial conversation with the investor.

Average or, better yet, calculate FMV per acre.

BiggerPockets also has a calculator to analyze deals, and I highly recommend you start this as soon as possible, even if you are not ready to buy.

I'm looking to dive in and learn so I've been just trying to practice underwriting lots of deal as best as I can to calculate the cash on cash returns and DSCR ratios.Thank you to all who answer!

I think I do want to get better at calculating ARV and understanding what appraisers really look into when calculating how this equity is acquired.Thanks for the reassurance.

We bought 1.5 acre of 15 acre land which was in agriculture tax exemption in middle of this year. how can we continue to get the same agriculture exemption for this and next year. we had calculated the maximum tax as $100 for the entire year during the closing due to agriculture tax exemption and have prorated accordingly for our 1.5 acre.

Would like opinions on things to consider that I may not be thinking about as a rookie on conventional or DSCR loan assuming it appraises for the calculated ARV during analysis vs finding other ways to flip now.

We calculated the collateral value of each property, and told him we would be willing to do a release based on (1) a payoff of our estimate of that properties collateral value PLUS (2) a extra fee (profit) to us of $50,000.  

If you calculate that this will generate a ton of dough like @Dave Stokley says, then it really doesn't matter.

I can only see the benefit of forming a self performing property management company if you believe you can be more effective on cost and service than the local 3rd property operators and even cost can be tricky to calculate because most focus on the management fee that's charged rather than the cost to put out fires when they do arise.