I know each market is different but like wholesalers I'm sure there is a formula when buying rental property.

Is there some basic formula used to determine an offer that takes into account rehab without actually seeing the property?

The formula we use to calculate ROI is as follows:ROI = ((Income - DebtService - ManagementFee - Insurance - RETax - PeriodicFees) x (1 - StateTax)) / ( DownPayment + ClosingCosts + RehabCost)While there could be dramatic differences in factors like maintenance, vacancy rates and such, I will keep it simple and only show the impact of variations in state income tax, property tax and insurance.Below are details on the example property I will use:• Purchase price $150,000• Rent: $1,000/Mo. or $12,000/Yr.• Financing: 20% down, 4.5% interest, 30 year term.

Does anyone use a formula for that?

@Nathan ScottIt's possible to compute the rental vacancy rate for various markets within the country by using data from the American Community SurveyThe formula is as follows:The rule of thumb most investors use when underwriting is 7%. 

What formula are you using to buy houses at?   

I want to get away from that type of behavior and just do real math, and formulas.

When we calculate our formulas, we don't even include vacancy as a calculation. 

Maybe at the end of the day, I need to pick up the phone to start figuring these deals out, but as I mentioned before, I've heard Grant Cardone work the deals backwards if he knows only one number and I'm looking for the formula somewhere but can't find it. 

Hi All,I am looking for the formula to derive an offer price based on an anticipated cashflow.