I personally had to go through an analysis exercise today, and I figured I’d share it here, just to provide another example of how some basic mathematical concepts can govern our investment decisions.Here was the situation that I found myself in today:I bought a property a couple weeks ago with the intent of doing some trash out and minor repairs, and reselling to another investor.  

That will play a role in how you evaluate the value.  

The RE agent who sold it to me is hesitant to go through the exercise of driving out to the property, being present while I show it, then perhaps having to repeat the process if the buyer wants to see it again.  

RE isn't an exercise machine, if they have enough sense to be "affluent" (LOL) they can make a decision.

https://www.redfin.com/CA/Los-Angeles/608-E-23rd-S...Here's the calculations: https://docs.google.com/spreadsheets/d/13ieez4soHg...I just kind of did this as an exercise to test my analytical skills and see if other more savvy investors think that I'm calculating things correctly. 

All, I would love to hear your feedback on a rental business model that was presented to me by 3 other individuals and their respective roles in this project. 

But with the assumption that you have already gone through that exercise and you are asking the forum knowing the answers, then I believe you really need to look at what Chris is pointing out.If the numbers work well on both the buildings and they both cash flow, but at different levels, then you really need to ask yourself how comfortable you are with the "bad area". 

I'll have to add this exercise to my buying criteria!

However, lenders must exercise caution when considering retirement accounts as effective reserves because these accounts often•are in the form of stocks, bonds, or mutual funds;•feature significant penalties for early withdrawals;•allow limited access; or•have vesting requirements.If the retirement assets are in the form of stocks, bonds, or mutual funds, in order to be considered for reserves, the account must be discounted by 30% to account for market volatility.

I am new the to Fort Worth, TX area, I moved here from Salt Lake City, UT and looking to build my network with other like minded investors that are new or even seasoned to the business that wants to get together one a week or 2 times a month either in person or even over a Google Hangouts if that works for you to discuss our businesses and offer advice do role plays and offer support and motivation.