To make the math simple by using the 50% rule for expense estimation, here are the numbers:At $100K purchase price and 25% down, your NOI is $10,800.

Hey @Jon Holdman, great explanation and easy way to do the "napkin math" for any property.  

I don;t know all the math, but the rents seem low compared to the purchase price...plus you have to pay the utilities and assume 20% down on 75K = 60K loan360/month mortgage = 60K @6%150 per month min for Utilities.150/ month Real Estate Taxes?

I keep hoping to find a realtor that I can work with, but every time I call one I get the realtor math syndrome, followed by a "call me when you get serious" response.

There are so many questionable flat fee MLS listing websites out there, it is essential that sellers do their homework to avoid a bad experience.

Whether its a NY multi or a house in the boondocks that could be bought for $10K, the math is exactly the same.

When investing in Dominican real estate or in real estate anywhere do your homework and you will be able to avoid becoming a victim of fraud and corruption.

The Discounted Cash Flow is CCIM magic math.

Basically she's saying you can't do your homework and find a deal on a property and immediately resell it for a fair price.

But you have to live somewhere, and so you really have to compare your loss to what you would have paid out in rent.I have a spreadsheet that does the math and computes an effective rent.