@Loc R.Your NOI does not include debt serviceThe formula isincome-Operating expenses=NOINOI-debt service=cashflow

They give their case worker your number then the case worker will walk you through the process.To give you an idea of what the Fair Market Rent formula is you can find it by doing a search for: HUD Section 8 Rental Rates.

I don't know your market but if your market is hot and you can get $150k without having it on the market too long and you spend no more than $10k in repairs, your formula should be $150k x .7 = $105k - $10k = $95k max offer.If you are not fully confident on getting $150k quickly, adjust offer downward accordingly.

However, to be better at this, I know I need to read, read, read more, and practice the formulas until I have them down (AND understand their meaning and usefullness).John ThedfordNaples, Florida

The formula is:Capitalization Rate = Net Operating Income / Value (or Price)This will increase your cap rate - which is in line with many Cleveland property.Also, don't get hung up on this "2% rule".

Actually, the soft costs such as closing costs, commissions, other holding costs etc.... would be deducted to give you your profit and will vary based on what the customary expenses are associated with those items in your area.This is a fairly easy way to analyze potential deals for fix and flip and you should be safe if you follow this formula.

Do you have a formula to be able to figure out how much home I can buy based on the rents?

Formula for turn key (no rehab): ARV-$10,000-15%-closing costs is the offer I made.

I would love a formula I could just plug and chugg the numbers, so I can offer him better properties in the future.

@Stephen Kennedy- Great point - however, do you find that sharing you ROI objectives and formulas with your agent is a positive step?