The math with 1% is so easy though that you can do it in your head and that is why people like and use it.

I'm looking at some flips in Arizona and the math doesn't work out when you add in some of the big ticket items like a brand new AC.

Simple answer, RE is all about math, simply run the numbers.

My friend who had heard the whole conversation right next to me just turned and said, "I can't math."

We have a relationship with a much larger developer who does multifamily, mostly apartments, and even they can't figure out where to put their money right now, because the math just aint mathing for them to build or renovate at the moment.

You can make whatever offer you want to make based on your math and MAO, but don't lie them by falsely claiming that their property is worth less than X dollars in a market.

DST's have low returns like 5% and lots of fees, but other syndications like mortgage notes can earn up to 12% out of the gate with no record of failure, thus potentially offsetting that initial tax hit in the long run, but you have to do the math. 

So you have to do the math ahead of time...

From listing investment properties in Akron and Cleveland I would do my homework to make sure tenants are indeed paying rent.

This is a math and a 'gut check' problem.