To give you guys an idea, I opened an IRA 10 years ago and I calculated my annual return at 4.4%.

A used house that can't be rebuilt for the same price might be a good bet.

Great question, I too am interested in the BP community recommendations for books on note buying, I just ordered two books yesterday on the topic on Amazon, wish I had thought to ask here first.I based my purchase on publication date being newer than 2010 and number of positive reviews, kind of a sketchy criteria I guess.I also read Invest in Debt, went and bought a financial calculator, and read it again, really interesting read.Rick

Lex Dixon for a quick calculation for apartment value if building is old use .40 or if not too old (under 10 years old) then use .50.

How can I calculate DSCR and CoC prior to making an investment if i do not currently have a loan on the property?

We should have started some kind of betting pool -- guess the next applicant or something.

If it makes sense, its worth moving forward. 60%, 65% , etc are just guidelines for real quick spur-of-the-moment calculations (in that case, use whatever number you want.

Want to make sure I'm fully grasping the concepts and calculations so that I can better analyzie future deals.

Working on OP numbers.Rent $1150Expenses 50% = $575Hoa fees = $300Debt service = $375Is a loss of $100/month.Now, OP doesn't state whether his debt service is PI or PITI, I calculated PI, if it does include TI, then numbers don't look as bad.

You have to manage risk... or take calculated risks by putting controls in place to mitigate catastrophe.There is a ton of information on how to invest money in real estate around here.