2) I found a nifty tool that calculates the ROI, Capitalization ration, and cash flow.

Hi Steve,Section 8 will calculate how much a tenant can afford based on tenant income.

Hi,

The point of this message is to try and find out what a good real estate investor does when crunching the numbers before they acquire real estate. Can you please look at what I did below and tell me the pos. and ...

Just do a rough calculation (your cash X 4) to determine if you can even consider getting into commercial properties.Evaluate your cash, do a market analysis for your chosen niche in commerical real estate (gotta have tenants), and then go search interest rates.

When calculating this don't forget that when moving most of these folks can probably find some kind of "1st month free" deal for new tenants so that's why I suggest a 10% margin between your "new" rents and your estimate of market rates.

One accountant I had told me no, I would still have to pay based on the profits after the basis was calculated.

I'm always entertained to hear them trying to remember how to plug the forumula into their Texas Instruments BA II calculator.

the way to calculate monthly payments would be 14% x the loan amount, then divide by 12.

Your best bet with this is to get ahold of the county tax property tax records department and simply ask them.

It is a little on the vague side as far as leaving out calculations for NOI, ROI, etc, but it does tell you all you need to know from a broad perspective.