Hello everyone,My business partner and I spent 10 years building an internet marketing firm that now, *knock on wood*, runs a bit like a well-oiled machine. We have roughly $5,000,000 in cash to show for it and decide...

If it doesn't hit the 1% rule, I don't even consider doing further analysis as it is usually a big waste of time.

Here are the two analyses: Initial Investment Purchase Price $89,000.00 Closing Costs $2,225.00 Renovation Costs(allegedly turn key) $3,000.00 Total Investment Costs $94,225.00 Financing Costs Down Payment (%) 20.00% Down Payment ($) $17,800.00 Mortgage Balance $71,200.00 Annual Interest Rate 4.00% Loan Term (months) 360 Total Invested Capital $23,025.00 Fixed Monthly Operating Expenses P&I $339.92 Financing Charges $0.00 Administration Fees $12.50 Property Taxes $197.08 Homeowners Insurance $111.86 HOA Fees $0.00 Fixed Monthly Total Costs $661.36 Variable Monthly Operating Expenses Property Management $157.50 Advertisements/Referrals $65.63 Vacancy & Collection Losses $131.25 Capital Expenditures Replacement Fund $50.00 General Maintenance Fund $50.00 Temporary Utilities $10.00 Pest Control (Optional) $0.00 Lawn Care (Optional) $0.00 Total Variable Expenses $464.38 Total Monthly Expenses $1,125.74 Annual Operating Expenses $13,508.86 Operating Income Monthly Market Rent $1,575.00 Annual Gross Revenue $18,900.00 Monthly Profit (or Loss) $449.26 Annual Net Profit (or Loss) $5,391.14I present to you such a thorough analysis in the attempt to make sure I'm not making any glaring mistakes!

A few definitions to know in this domain of land development:Raw or unfinished lot cost = raw land prices divided by number of lots derived from land planning actions Finish lot cost = the cost of the land, development impact fees related to land, and common infrastructure (i.e. streets, sidewalks, parks, schools, etc)Residual land value (RLV) = analysis of home prices less all cost to complete and what remains is what a builder can pay for land.

If it is the one on the MLS that is in Canon City I ran an analysis on it not to long ago.  

I'm not going to nickel and dime the property, but I'll have set values that I will stick to and won't waver unless it is a concession I can make work within the analysis I've done.  

Wouldn't your analysis not be correct?

When the get rich in Real Estate Guru's talk about people having large number of SFR units in a portfolio, I don't think they really anticipate many if any of the followers to actually do it, that's mostly hype for the sales pitch, If they did it would mean they didn't truly understand the next level in RE investing.I would rethink your plan and conduct some analysis on obtaining Institutional grade Multi-family properties. 

Looking to get $1500 in rent, but conservatively estimated about $1450 in my analysis.

It could impact investors, lenders, attorneys and CPAs if there is a massive transfer of properties into LLCs and it will create a ton of debate on the due on sale clause (inside and outside of banks) and analysis on the pros and cons of LLC tax benefits versus residential financing terms.