Do yourself a favor and do a search here on cash flows and formula's used to find out if it is a good deal or not.

That way you never have to do the song and dance routine that banks want to put you through to qualify for a loan.There are a number of courses available out there,check for posts on this forum.

I've turned down plently of "deals" that had no equity simply because they didn't fit my formula and exit strategy.

Using the $100 cash flow goal, on a 4 family do you shoot for $100 x 4 doors or is the formula different for a 4 family?

There is a system out there being sold stating that you can contact property owners who are delinquent before it goes up for the tax sale possibly buying the property for a token amount, assuming the taxes, recording...

So, the rental market will ultimately dictate their value.The long held investor formula for rentals is rent = 1% of price.

Mortgage 650 moTaxes 375 moIns 66 mosave 500mo for unforseen issues.Rents at the low end would bring in 2400 moLeaving 800mo/269 a unit/mo cash flow, which I also would bank because Im a nervous nellie.I am not sure the rest of the calculations or the formulas you use.Does this sound feesible, or am i am missing somthing?

Chris thanks for the info, chris i also found out that my thoughts were correct.there is no set value, the value of the property is based on what makes sense for you to achieve your investment goals (that's it).some will say to not rely on the cap rate for your purchase decision (which i agree), but to use it to compare to other similar properties that have sold in the area, which is actually not reliable because 1. there will be less comparables, 2. how properties were purchased vary from deal to deal, 3. the inner workings of most transactions are confidential.so the best way to analyze a deal (while using cap rates) is to add your financing terms into the picture (principal + interest and etc) and calculate what the deal is really worth to you.see the normal NOI/Asking price = cap rate is based on if someone were to pay all cash, this is the return they could expect first year, but paying all cash for a property doesn't happen all that often (bank funding will be use for a large portion of that cost).so i found the best way to use this formula and analyze my deals is by look at all factors but also including my financing terms with my desired return objectives into the picture to get a proper view and value to me.

Jon, using your formula, I'd have to acquire this property at $70,000 for it to cash flow, assuming 7% mortgage and $950/mo rent, wouldn't I?

Whats the quick formula tom calculate monthly interest payments for a fixed rate mortgage?