I fear that the first post could be a little misleading for new investors who don't understand the stock market or the formula for compounding interest.Investing in capital markets is a critical strategy for anyone seeking to increase net worth over time.

You are using the formula to calculate FMV = NOI/Cap Rate or FMV = $200k/10% = $2 Million.Let's say we are in the year 2020, 3 years in the future.You want to sell your property.

I didn’t have that formula so when I plugged in my numbers I get a range of values based on the ARV.

Agree completely with you @Jenifer Levini and Frank rolfe will tell you that he doesn't know california and the formula's don't hold true there when evaluating properties there.  

This formula works well for me, and frankly I think applies anywhere.  

Ignore the formulae and focus on actual local data input.

Plug the various X and Y into my formula, and I can determine which scenarios will yield the most profit.Of course, you also have to consider the intangibles -- like time and headache.  

Does anyone know of a formula based on the square footage of a house to try to figure out what would be required in the way of solar panels to generate 100% of the electric from the solar?

It's as simple formula:All cash out (within the 1st year only      = CoC ReturnAll cash in   Example:  House cost $100k;  Cash flow = $500/month = $6k/yearA - You buy all cashCash in = $100kCash out = $6kCCR = 6% (not very good)B - You buy with 20% downCash in = $20kCash out = $6kCCR = 30% (much better)...or, my favorite way to do this,...C - You buy with 100% down, then refinance it all back outCash in = $100kCash out = $106kCCR = 106% (much, much better)...then use those funds all over again.CCR is the best formula to access financial risk since it measure how large it is (the high the %, the greater the financial risk) quickly it is reduced.  

I own 1.75 acres in southern Oregon that I want to develop into approximately 40,000 SF of self storage.Anyone have any basic "rule of thumb" or "cheat sheet" operating expense formulas that I can use for a proforma?