I have a family member in Houston taking the "Daymond John and John Hopkins Success Formula".

I think they wanted to hear $2M but I'm not in this to break even and I don't think its prudent to put my formula in front of them to show them the analysis.Would appreciate a realty check and any guidance going forward from the group.

I am thinking that the formula for flipping is relevant in this situation, too. 

When calculating DSCR, we know that the formula is NOI / Debt Service. 

I know people use all kinds of methods and formulas and all kinds of acronyms to try to figure out if you're getting a good deal! 

Also, how would the appraised value be calculated, is there a simple formula using the annual rental income?

Aaron McCarty if you look at the formulas/metrics in isolation then the numbers don’t mean much.The formulas/numbers is all relative, especially as everyone/business has different goals and risk tolerance.Compare the results to the alternative, example: compare the historical stock market return on blue chips to an A class area.

Get comfortable with all the components, data, and formulas needed. 

I have used a lot of the tools provided by other BP members, the BP formulas, and other things I found online.

Where did you get this formula?