In this thread, most are saying these capital expenditure reserves should not be part of the NOI equation, but it makes a huge difference in the value of the property (and what a reasonable offer would be).  

This is just another part of your investment equation - if it doesn't fit - it's a bad deal.  

But you can't just throw it all into an equation and get "the answer"!  

What equation do you use to run the numbers and what do you think about the rental potential on that side (beach rd) & the overall market conditions?

The biggest part of the equation.

Account Closed Thanks for the reply.Some details to add to the equation.

I looked up the addresses on pellegro.com because they have a link to the County parcel number so I can look up tax info, etc.I focused on a "last sold date" of 10+ years ago, with the assumption that this could equate to higher equity. 

Also, based on your formula, wouldn't owning it free and clear erase the "debt repayment" portion of the equation, actually increase the monthly cash flow.

I need a ggood way to factor those types of things into the equation.

Account Closed it's a great question and I had the same question - except I was on the other side of the equation (I was the Realtor, acquisition and finance partner) and when I first started I couldn't understand why a contractor would want to partner with me.