I will use the following formula to calculate the future rent at 5 and 10 years.Five years: $1,000 x (1 + 2%)^5 / (1 + 5%)^5 ≈ $865Ten years: $1,000 x (1 + 2%)^10 / (1 + 5%)^10 ≈ $748In five years, $1,000 will be worth the same as $865 today.

One I wanted to bring up as a separate post is how cap rate is used in commercial real estate investing verses residential (1-4 residential units per property).I had many commercial investors say that cap rate is irrelevant in residential investing, and I want to suggest a different approach.Before we go further, if you're unfamiliar with cap rate, the formula is Cap Rate = Net Operating Expenses / Property Value  OR  Net Operating Expenses / Cap Rate = Property Value.First of all, cap rate in commercial investing is a variable that describes a market. 

There is no specific formula on which is better or worse as its based on each individual property, you need to underwrite each property. 

You can easily add all these and more formulas into excel.

In Excel you have to really be cautious of formula errors, good luck.

It's the most basic formula there is...and the one that many seem to want to butcher the most.It's ONLY about cash, no "virtual" money, no assumptions (vacancies, etc...), no appreciation or depreciation impact, yes on the debt service, yes on the insurance and property taxes if paid during year 1, yes on your down payment (it's cash, right?)

Is there a rough formula for this???

Like @Brianna Schmidt said, the common formula in my experience is to split profits 50/50 with a funding partner like this.You're in a great position not paying interest (only profits) since you won't need as much of a spread in your first deal to make it work.Keep us posted!

Every credit reporting agency has a slightly different formula to come up with your score, however, credit utilization is roughly 20% of what impacts your score.

Any help on formula or what to do to obtain comps of land?