We have a formula that we lower the house $2K=$3K each week until it sells after a set period, usually 6 weeks.

With all the competition lately and rising prices, I no longer find it useful to try to figure out how much of a loss on the loan the bank is willing to take - mainly because they usually don't have to take too much of a loss these days and they know it.The kind of "how much pain can I make the bank take" formula I think you're getting at, worked a lot better in 2010-2012 but not so much these days.It seems to me, and I could be wrong of course, but it seems like banks sat on a lot of properties/loans for 5+ years because they either 1) didn't want to flood the market with REOs and cause prices to crash, or 2) it took that long to sell, resell, and straighten out the paperwork on those loans/properties.Either way, whether it's because the strategy of waiting actually paid off (now think about 5+ years of taxes and holding costs and see if it really paid off) or just because banks/REO agents have (finally) gotten hip to the state of the market, I don't see great deals from bank REOs nowadays.I think there are still "good" deals to be had - but there's usually a lot of competition on them, and banks/agents know it.Also, related, read any bank P&S/offer addendums carefully.

Hi Jorge,I am a newbie here as well but I was digging into the same Q for weeks now and here is what I came up with: My formula is conservative and I always tend to cut 35% of the gross rental income for any property that I am looking into in and here is the breakdown: Gross Yearly Rent - 35% to account for the following:10% Property Management*.

You will need to know the basic math of house flipping to be successful, as many real estate investors use simple formulas to determine if a property is worth buying.

Is there a formula you have that can let me know how much I should pay for a property based of the historic numbers?

I've merely changed a few numbers around and converted the Spreadsheet to a 17 year pro-Forma Business Plan:We made the assumption of a $1 Million Purchase, Investment of $200k, Appreciation Rate of 5% (very low for this Property, however), and kept all the formulas the same.We can see it's a profit of $1.497 Million but it's only a 749% Total Return in 18 years for a simple Rate of 42% Annualized and a RoR of 13%.

What are some useful formulas when flipping houses?

Maybe something is broken in the formula they use but that’s a long dang time.2.)

I was able to get the formula the city uses for property tax and i've included the new property tax numbers based on my purchase price in the pro forma.

Good Pod castApartment Investors of Michigan - Facebook group- https://www.facebook.com/groups/1173796829379623/Lance Edwards- https://www.apartmentwealthinfo.com/Brad Sumrok - https://www.bradsumrok.com/Ron Legrand - http://www.ronlegrand.comPodcasts:The Commercial Real Estate Show with Michael BullTarget Market Insights with John CasmonBest Ever Real Estate investing Advice with Joe FairlessThe Real Estate Guys Radio ShowThe Wealth Formula Podcast with Buck JoffreyWheelbarrow Profits with Jake and GinoHope that helps.