I am living with a roommate and assume we pay equal rent.Lately i've been reading some other threads and started doing the math using some of MikeOH's calculations and realized i might be losing money, especially now that my assessments went up and they levied another 3 years of special assessments.basically gross rents are about 18,000 (1500 per month)expenses: 9,000NOI: 9,000Debt Service: 9600 (800 per month)So if I used these calculations just to analyze the deal, I should have known right away I was going to negative cashflow.

Lets say the mortgage was 1500/mo ($1411.86 to be exact according to the calculator).

From reading John's post I guess it is that is how I was calculating the 3% cash flow left over in my hypothetical.I really appreciate all of you pointing me in the right direction, my next step is to find out whether this idea is a legal 1 and then incorporate somehow the great feed back you guys provided, if anyone else has an opinnion please feel free to share it with me, thanks again to all for taking the time to respond.

The county used a general footprint to calculate the house square footage.

MikeMikeOH,Is there any reason in your calculations you assume no money down and a 20 yr fixed?

They likely could not figure out how to even calculate the NOI.John Corey

Home was bought in June '03 for $89,900, mortgaged for $76,400 with Countrywide on an adjustable rate that, according to my calculations, should be about 10.75% right now after resetting.

I know of a mortgage calculator I can use but what terms would be best for estimating holding costs?

A calculated monthly GRM purchase price around 27!?

That's 3.2% according to my calculator, or less than a money market fund.