I bet most of your friends didn't get their by paying cash for everything, though.

This is a system that calculates the cost of utilities for each unit and a good way to charge back. 

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

When you calculate your cap rate (NOI - net operating income / Purchase Price) do you include your closing costs and initial repairs in your calculation or do you just go with the actual purchase price and leave those costs out?

Calculate your bottom line using 70% of ARV (After Repair Value).Do not spend more than (.7*ARV)-RC (Repair Costs)Example: House is appraised at $100,000 *if repairs are made*...7*100k = 70k.Repair costs are expected to be $25k. 70k-25k = $45,000 (DO NOT BUY THE HOUSE IF IT IS OVER $45k)Take another look at the ‘going rate’ of rent in your area, make sure your cash flow is enough to cover ALL costs and include a buffer for taxes and unexpected repairs.Look at the property yourself - try to eliminate assumptions.Have a trusted professional assess and confirm info about repairs that may have been overlooked.Look at how much work you can do on your own and compare it with contractor rates to complete all repairs.

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

Obviously I will get hard written contracts before finalizing anything.I'm calculating my Cash on Cash return at about 30%. 

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

You do too, because you admit that your per-sf calculation puts the property within 5%-7% of her asking price.Maybe she will budge, but if it was me and I knew the value, I would not.If you want it and the numbers work, pay her price. 

Demo of a roof that size will be 40 min for a 2 man crew... you won’t even see a cost savings on a quote I bet.