Grand Rapids is a beautiful city.

@Diamonte ZarbaWelcome to BiggerPockets When figuring out MAO  I use the following numbers ARV x70%, - repairs -holding cost (10% of ARV), desired profit (20% of ARV) , cushion or oops factor (7% of ARV) = Maximum Allowed Offer Hope this helps Steve

So, you determine "Goldilocks" market rents, discount it by whatever stable vacancy factor (say 15%), subtract your expenses (any specific $$$/unit or range?)

I'm in grand junction Colorado and found a beautiful 2b/3b house that's close to 2k in sq ft.

Hi Shelly, Equity is somewhat subjective, because there are so many factors to take into consideration.

There is some type of restriction on the number of members and often they must be family members or other limiting factors enclosed. 

I also put in a number for property management...you may plan to manage it now, but for me if it does not CF when you factor in prop mngmt I stay away.

Beautiful name by the way.To me, it doesn't worth a nickel.

At the end of the day, the numbers are a factor most certainly...but I've walked from pretty numbers that my gut said were going to be ugly, and I've also grabbed properties that for most would have been a no go because I was content with the appreciation and depreciation while I waited for the cash flow to get juiced up a bit...so it really depends on your goals. 

This could be a deal but if he's painting a beautiful picture then why is he selling it?