That looks pretty reasonable, though you should use the fixed up value in the calculation.

From Calculated Risk (http://calculatedrisk.blogspot.com/2008/09/mark-to-market-quotes.html): "Suspending mark-to-market accounting, in essence, suspends reality."

The problem is in the settlement, the interest paid to lender (for the remainder of the month, before regular payment kicks in) is calculated 7 days from the day of closing.

Your best bet may be small neighborhood banks.

I bet Vegas is full of real estate opportunity.

Mortgage 650 moTaxes 375 moIns 66 mosave 500mo for unforseen issues.Rents at the low end would bring in 2400 moLeaving 800mo/269 a unit/mo cash flow, which I also would bank because Im a nervous nellie.I am not sure the rest of the calculations or the formulas you use.Does this sound feesible, or am i am missing somthing?

I'd do the calculations the same as Mike.

Standing here in TX, it certainly appears that rents shouldn't drop in your area, but that doesn't help you much.I'm betting that:a) Your area is being flooded with sfh'sb) Your area is being flooded with an equal number of new renters who can't qualify to buy again soc) Rental rates shouldn't be affected *too* much On the surface, it seems that equilibrium should be maintained.

Hello Everyone, there's this thing with cap rates (well checking for a properties true value) that I just can't seem to wrap my brain around and wanted to hear what some of you other investors thought about it.OK. everyone knows that the properties value is based off its income (NOI) which I got that, and everyone knows you arrive at the cap rate by dividing NOI by the Asking Price which you get the cap rate at which the seller is selling his/her property at.so my question is, isn't it a flawed pratice to analyze all deals off a 10% return/cap calculation?

Many new investors like to pretend that these expenses don’t exist, but I assure you that they are very real.As far as 100% financing, Jon uses them in the calculation to evaluate the quality of the deal.