I will walk through the scenario presented above to show how I would analyze this.In this scenario, we have a borrower that is considering paying a higher interest rate to get rid of PMI expense.  

Glad to see you here...Btw, for anyone interested in both the strategic and tactical aspects of analyzing, bidding on and buying large multi-unit properties, Sean is a great resource...as best I can tell, he spends most of his days jet-setting around the country looking at large apartment deals...  :-)

Be patient and analyze a lot of deals but in the end you gotta make some moves!

I made a pretty simple but effective spreadsheet when I first started analyzing deals.

make sure you are always testing and analyzing which keywords are working for your campaigns.  

I've analyzed 40 markets on their economic and demographic trends combined with housing affordability and ROI and both come up very favorably.

. - At the top of the page is an "Analyze" dropdown.  

It very rarely goes to '0'.Regarding the 50% rule, this is a rule of thumb, and as with most rules of thumb it serves as a yardstick with which one can make decisions more quickly as well as a safety net when someone doesn't have enough information or how to use it.Here's an example on the deal I'm working on currently.I have a big spreadsheet I use to analyze investment potential into which I plug various variables including interest rate forecasts, etc...

You are correct, the yield is what has attracted me to this deal, I hate to just make assumptions and not take the necessary steps to analyze it and determine properly if it's worth the risk.Any guidance you can give is greatly appreciated.

I am not necessarily looking to buy the property just wanted some insight on how to analyze such a deal.