You would use the 7% market cap rate we already determined to sort of reverse engineer your value: $97,500 NOI / .07 market cap rate = $1.392M vauation.I started out saying this was oversimplified, and you'll noticed I used the word "assuming" about 10 times in the above example.

Yes, I'm positive it was a judicial sale. 

You are getting a million dollar property with a positive cash flow by just putting $10,000 - if you can pull this off, sure, go ahead.Having said that, the Cash on Cash ROI is 37% with next to nothing Cap Rate.

I noticed that we also have to choose what our down payment percentage is (which I put in 5%), so I wasn't sure if the way I'm doing it is including the 5% down payment in both sectionsThanks for any and all advice!

Lot's of youngsters on that platform sharing ideas and what I've noticed is that the lower level gurus preach passive income but the higher level multi-millionaires tend to dismiss it.

The notice to vacate letter. 

Hey @Aditya Maini If you are using a low down payment, its not really realistic to expect to be cash flow positive.

If you only spent money you borrowed from HELOC to buy these properties, then you just created FREE positive cashflow with $0 out of your pocket!

I look forward to the positive feedback and support I constantly see throughout the Bigger Pockets Community.

Must have references that are positive, employer that is positive (or verifiable consistent income), 1st last and security, and complete background and credit check.