This way, I can go through and calculate basic ballpark.

View report*This link comes directly from our calculators, based on information input by the member who posted.

View report*This link comes directly from our calculators, based on information input by the member who posted.

I decided to run IRR (Internal Rate of Return) calculations for the SFR (single-family residence) investing in order compare with the IRR targets I see proposed by syndication operators.

The appraiser will do a 1007 to determine the market rent and the lender will use that figure to calculate the Debt Service Coverage Ratio.

Currently I am exploring investing in new construction rentals with the goal being to better calculate cash flow at the front end with maintenance/cap ex expenses being low for a prolonged period of time and predictable.

But as soon as the market starts to loosen, deal flow increases and investment sentiment is less sour, a whole new batch of people will be back on these forums and elsewhere pitching how their 12 months of loan underwriting, and a few blog posts about how you calculate cap rates, qualify them to try to raise millions in investor capital.

This is all true except the no expenses or depreciation part, you actually can do that in an IRA (just doesn't help you personally today) on leveraged real estate because that portion of the income is subject to UDFI/UBIT tax which is calculated after deducting the first $1000 and accounting for depreciation and expenses as it relates to the % of the mortgage. 

@Matthew M.If you are buying and appraisal was more they will say share the appraisal - also sf can be calculated differentlyIf you are buying I would not complain as you are getting the value you wanted (or more).

You can find the properties through this website: https://listings.vrmco.com/Just a word of caution for anyone with student loans, New American's qualifying criteria are similar to FHA - when calculating DTI, they will use 1% of your outstanding student loan balance rather than your actual monthly payment.