I am reviewing my potential first note purchase, and there is an equation I want some input on.    

The equation is as follows, COCR = Net Income / Initial Investment The net income here takes the NOI and subtracts the debt service payments from the loan.

and involve a bank in the equation!

Then opendoor comes along and says we think your home is worth $370k to $380k BUT we will buy it right now from you without you having to market the home or do any showings etc for $375k but we are going to charge you a fee up to 12% (in our example this would equate to $45,000).

I would find another way to finance it and remove him from the equation.  

My Chase Saphire Reserve card gives me 3 points for every dollar I spend on travel/dining, which equates to 3% back in value, plus all the ancillary things I get from the card like free airport lounge access, free rental car insurance, auto rental upgrades, TSA precheck.Most of my spending is on dining/bars, so I use that to get the better return.

My background is in Finance, Valuation and Strategy and I have spent most of my time working in corporate, as well as one year on Wall Street... which all equates to not much real estate deal experience.I am most interested in wholesaling, BRRRR strategy, and finding a financial way to take down some large cash producing assets/portfolios.I am looking forward to gaining and sharing knowledge with everyone.

Section 506 investments often are not liquid.It is not completely accurate to equate wealth and income with investment savvy which is what the accreditation rules generally do.  

The cash flow equation is another story, make sure if you cash out at 75% LTV it will cash flow after the mortgage, taxes, insurance, and vacancy/repairs.

Lucky B,  IF you are planning on shopping around on courthouse foreclosure auctions then establish a good equation with a title company for running title searches for low fee.