@Easton Enge, I imagine that the answer is "yes", with the proviso that you are using the correct formula for a single family home, which of course is largely guesswork anyway, because every property is unique, and the market value depends on who is looking to buy on any given day and how much they can afford, and how good the selling Agent is, and how desperate you as the Seller is at the time, and how much the Buyers have researched the comps, and (should I go on)?... 

Is there a formula for this?

Flip2freedom episode 77http://www.flip2freedom.com/a-3-step-formula-to-a-successful-balanced-and-insanely-profitable-2012/ - LISTEN TO THIS TODAY!

While CAP is a universal term, everyone calculates it differently.You should use your own CAP rate formula on deals you're interested in so that YOU can compare deals that YOU are interested in.You can't take anyone's word for it in this business.

I don't mess with formulas but that's just me.

I am trying to find what the formula to calculate the annualized return on an investment is, based on compound interest.

Cody,, no two are the same that's why there are no rules... you have to look at each one and do the simple math.. you can napkin math it using the 70% ARV minus rehab that usually works OK.but what I laid out took me 3 minutes.. just put your formula together and use it each time.So ARV  =10% sales costs =  (  )SOW  =  (   )Carry costs = (   )your fee  =    (  )15% profit on gross sale for end user  = (   )   now this is a rule of thumb others could do it for less others could come on BP and say they won't do it for less than 20% but I know west coast is very competitive and 15% on gross is what we try to make on new construction.. and we usually hit it OK.. but sometimes its 10 to 12%  but then we might be selling 20 plus homes in 10 months so its still a big number in total.But run it by your buyers and see what their profit margins need to be..

@Michele Rok what formulas do you use to run your numbers?

"Magic Rental Formulas" are common with investors for sifting through the hay stack to find the needle, but an experienced investor is still going to crunch an actual income expense statement on the property before they put it under contract.Now the 1% rule of thumb completely depends on your market.

Hard money does not work well with many situations.Tangent: Ever hear the formulas that talk about never paying more than 70% of the ARV minus all costs, etc.?