The second part (TI) is calculated by taking the homeowners insurance premium which is paid once per year and the property tax which is also paid once per year (through it can be a little more complicated, see below) and dividing by 12.

Your best bet is just start putting in offers and see what happens.

The depreciation on rental properties (residential 1-4 units) are calculated from the value of the improvements and divided by 27.5 years.For example, lets say your rental is purchased for $200,000 and the land is assessed at $40,000 and the structure (improvements) assessed at $160,000.

You can just forget doing an assignment at all, unless your buyer is using Hard Money or Cashola.If you are doing a double closing, FHA will not work at all, as they require at least 90 if not 180 days title seasoning depending on a few factors. if you are trying to pull off a double closing, the best bet is to get a cool title company, a transactional funding lender, and a Fannie Mae qualified buyer.

I know there are tons and tons of internet calculators you could use to calculate the monthly payment of a loan but I'm looking for the actual formula that is used.

(Makes me feel claustrophobic just thinking about it :badwords: )I'm betting the septic system is going to cost a bundle with all the new regulations around here...

The way I understand the process, I'm going to find these pre-foreclosure homes and try to meet with the folks to inspect and get details, then calculate numbers from my perspective and perform due diligence on liens etc., and then try to get it under contract with "Me or Asignee" as the buyer and a small amount of earnest money.

Have I missed anything major in my calculations or plan?

Your best bet is to review a self storage rental agreement, and work from that.

Are you betting on appreciation?