If you buy at Home Depot or lowes, sign up for an account and you can get good discounts on paint..

These folks often come back wanting discount...

I did have two on a variable rate for over a year but with the movements in the bond market and the very slight difference in rates between variable and discounted five year rates in the last month or so I converted those to five year terms.

Unless you were able to acquire this at a big discount, the numbers wouldn't make sense.

So in my example your discount rate is 5%/yr and the $10k is only 1 year out so the cell formula would be NPV(0.05, 10000).An easier way of thinking about how much money you will make off the CF vs exit proceeds is if you simply added up the total amount of money from the annual cash flow and compared it to the net proceeds from the future sale of the property.

Can you, and do you want to, absorb the (negative) cash flow since you'll be on the hook for the full mortgage cost and all expenses, even though the project shows a positive ROI.There are some tax implications for this as well, you 1. are effectively paying yourself rent with pre-tax money which offers some discount and 2. generate substantial mortgage interest deductions at the price level listed.

Is this Duplex a distressed property that can be purchased at a good discount?

Try and sell for a discount to another investor or even the possible home-buyer who has their own lease commitments

I have an HD Pro Account and was given an 18% discount on this relatively small order in the "bid room", so I felt pretty good about the price (effectively $2.28/sq ft).

For that he gets a 80% discount on his rent.