I used the comps that my real estate agent provided to me in a CMA to calculate the ARV value.

If you need to lay out additional cash expenditures (deferred maintenance), the 1.5 calculation no longer applies as your "cash in" is higher.I would offer more in the $150 - 160,000 range and get closing costs included.

Lokesh: if the home is owner occupied now and the owner is paying more than 31% of net income for PITI, than she could be eligible for a modification if the lender participates in Making Homes affordable. there are other in house modifications as well.If the homeowner qualifies the minimum payment could be as low as 31% of the owners gross income if you calculate a 40 year amortization at 2% for 70% of outstanding balance with a 30% balloon at the end of 40 years which will have no interest or payments for 40 yrs you will see what a minimum payment could be .

.- Tenants pay water/sewer/cable/phone/garbage/electricityReserves I Calculate:- 6% for vacancy. ($96 per month)- 6% for repairs. ($96 per month)Estimated property taxes: $1,462/yr.Estimated insurance: $1,482/yr.Lending Terms:25% down payment = $30,000.$90,000 @ 4% over 30 years = $429.67/mo.Each unit currently rented at $400/mo.

Now if you're asking him to go in on stuff with you, then all bets are off.

Seconds can be made by the municipality eco. dev. dept.You can bet that NPs will take the lion's share of CDBG funds and HUD allocations but private parties also have access in your economic development zones.Probably the easiest way to tie gov. funds with private money is simply to piggy back the financing.

If that is 20% then calculate 20% of $55K or 11K in tax savings.

Also, when calculating estimated returns/cash flow, part of the mortgage payment is going to pay down principal, should this be considered in estimating returns as you are building up equity for yourself?

Then even if it sells right away, you frequently have to sell more than once when your first buyer's financing is declined.Second, you haven't accounted for any carry costs or closing costs: transfer taxes, recording fees, attorney and/or title company costs, property taxes, empty house insurance, utilities, etc.Third, if you pay 13K interest on 67K for 4 months, that calculates out to 77% interest.

These are not advertised CAPs, these are my calculations.