If          i understand the tax code that you wrote here, just side note the conventional fannie mae doesn't accept DSCR more than 1.0 for primary financing so they can't be used to offset other property or reduce aggregate DSCR, but private loan can do that , if I add my kid to pay rent then dscr would be 3.0 lol but actually  my dscr is already greater than 1.2 in all ex-primaries.i've been living for free utilizing this cap rate formula when applied to primary lol

I bet the big companies are bidding on houses and I am sure they have a formula where they can bid up to 9 months worth of interest for example.

If you have your cashflows, you do the IRR in excel with an IRR or XIRR formula.

I know how the job progresses on my homes but have no idea on how it will progress on your build.I would suggest getting a schedule from your builder, then applying the interest formula to that schedule. 

Hello BP Community,I am curious how people estimate rehab costs on an auctioned house that you aren't able to see ahead of time.Is there a formula? 

@Porsha Fross that formula is a formula that has floated on the internet, but it's widely optimistic unless you're in a dense environment without much competition - aka one of the first spaces in NYC or SF.

I didn’t use a formula or anything to come up with that figure, I just think that would be sufficient to demo and clean up the debris of about any 1-4 unit building. 

The formula for Mortgage payment just copies last years monthly payment unless I put in a new purchase price (signifying a refinance) at the top of the column so the $401 a month payment in column 2 is accurate.

I figure Ill just use my wholesale formula to determine the equity needed but that is different for each buyer (flippers).

Breeze flowing over cold Pacific Ocean water ... nature's AC :) Maybe not so much in Van Nuys, though.If that 2 BR is surrounded by much larger homes, that could be a good deal for future development and values ... smallest, most run down property on the nicest block I could reasonably afford has been a winning formula for me personally over the years.