Flip2freedom episode 77[http://www.flip2freedom.com/a-3-step-formula-to-a-successful-balanced-and-insanely-profitable-2012/] - podcast - LISTEN TO THIS TODAY!

.• The formula does not factor in the effects of appreciation and depreciation.• It does not factor in the risks associated with the underlying property.• It is a simple interest calculation that ignores the effect of compounding interest.

Location, location, location and making rational choices of a rental class will produce the opportunity to make the formula work, where ignoring the fundamentals, attempting to make a class c property pay off is a recipe for disappointment.

Tarl Yarber , congrats on a job well done.Your rehab formula looks similar to ours and I recognize some of the materials 😀.

I currently own 15 rental properties and this formula has worked well for me.What questions or information should I try to get when I sit down with this seller?

Unfortunately there's no cookie cutter formula for rehabs.

Here is a little formula to use for multifamily:GPRI (Gross Potential Rental Income)- Vacancy (5%) -minimum bank is going to use -depends on market area may be higher.- Concessions (what you have to give away to get people to move in, or loss to market rents)= Total rental Income+ Other income= Effective Gross Income- Expenses - (50% at the least for Apartments)= Net Operating Income (NOI)Then take your NOI and divide it by your CAP rate to get a rough value of the property. 

This project helped me find my niche and the quick turnaround formula.

Unless it’s a high end Property with little to no expected capex/opex and appreciation is part of your calculation  I used to do that math until I found there is not much in the Phoenix area that satisfies the formula (unless you are a wholesaler or cash buyer).

The due on sale clause is going to come into play if you plan on 'rinsing and repeating' with this formula.