There is a formula to wholesaling, no need to improvise.

Anyone happen to have a formula you use to determine this on the fly?

Debt service / financing costs are not even included in the cap rate formula (the calculation of cap rate assumes a cash purchase).

Is there a formula to base my offer on so I know not to pay too much? 

What hurts Investors that use this formula is it does not account for Holding Costs, Backend Selling Costs, etc.

But...Is there any kind of formula anyone uses to "back in" to a maximum offer price in order to enter into a further negotiation on this deal?

Investors that I know use this formula for rentals: potential rent x 70 less wholesale fee = MAO800 x 70 = 56,000I asked for 55,000 to my buyers. 

I am looking to hopefully save folks some headaches:My numbers:For year 1 the Total Annualized Return is based on:(ARV+ total profit)/ARV ^ (1/Number of Years)-1(160,000 + 20,777.91)/160,000 = 1.129 or roughly 129% Total Annualized Return (not sure why it is slightly off with the BP number on the table at the bottom.)Year 2 and beyond this is the formula(Total Cash Invested at Refinance Stage + Total Profit If Sold)/Total Cash Invested At Refi ^ (1/Number of Years) -1($16,200.00 + $29,232.12/16,200) = 2.804451852.80445185^(1/2) or 2.80445185^.5 = 1.6746 1.6747-1= 67.47 or 67.47% Total annualized return year 2Year 3 Total Profit is sold $38,029.60(16,200 + $38,029.60/16,200)=3.34753.3475^(1/3 or .333) = 1.495 1.495-1= 49.5% Total Annualized Return Year 3If you need help calculating exponents like 3.3475 (to the power of or ^) .3333 check out the calculator below.https://www.calculatorsoup.com...With real numbers from the BP Calculator Cut N Pasted$100,000PURCHASE PRICEPurchase Closing Costs$5,000.00Estimated Repairs$30,000.00Total Project Cost$135,000.00After Repair Value$160,000.00AcquisitionDown Payment$100,000.00Loan Amount$0.00Loan Points/Fees$0.00Amortized Over0 yearsLoan Interest Rate0.000%Monthly P&I$0.00Total Cash Needed At Purchase$135,000.00RefinanceLoan Amount$120,000.00Loan Fees$1,200.00Amortized Over30 yearsLoan Interest Rate3.750%Monthly P&I$555.74Total Cash Invested$16,200.00Year 1Year 2Year 3Year 5Year 10Year 20Year 30Total Annual Income$14,300.00$15,912.00$16,230.24$16,885.94$18,643.44$22,726.25$27,703.18Total Annual ExpensesOperating ExpensesMortgage Payment$8,885.43$5,551.00$3,334.43$12,715.42$6,046.56$6,668.86$12,836.36$6,167.49$6,668.86$13,085.52$6,416.66$6,668.86$13,753.37$7,084.51$6,668.86$15,304.84$8,635.98$6,668.86$17,196.07$10,527.21$6,668.86Total Annual Cashflow$5,414.57$3,196.58$3,393.88$3,800.42$4,890.07$7,421.41$10,507.11Cash on Cash ROI33.42%19.73%20.95%23.46%30.19%45.81%64.86%Property Value$163,200.00$166,464.00$169,793.28$176,652.93$195,039.11$237,751.58$289,817.85Equity$44,292.94$49,805.17$55,468.45$67,266.64$99,745.16$179,943.54$286,519.59Loan Balance$118,907.06$116,658.83$114,324.83$109,386.29$95,293.94$57,808.04$3,298.26Total Profit if Sold *$20,777.91$29,232.12$38,029.60$56,688.30$109,960.60$249,237.22$442,433.76Annualized Total Return128.26%67.46%49.59%35.09%22.78%15.01%11.79%1

What formula do cash buyers use to purchase property? 

@Jonathan Emery I used this formula: Gross Operating Income - Operating Expenses - Debt Service = Cash flow@Jason V. would you use 10% across the board (Prop mgmt/Repairs/CapEx)?