Take the amount allowed for debt service and put that in your calculator as the pmt, plug in 180 months for the term, look at it at 6% and plug that in, then compute for the present value.

I bet any of us here in BP can run circles around these guys with the knowledge we possess.

As for factoring in all your fixed costs, here's a good read for next time: Calculating Fixed Costs (J Scott Blog Post)

Until you have 2 years rental experience that you have paid your taxes on banks will not count the rental income towards your gross for calculating how much you can afford to borrow.

I am intensely fascinated by the market and the fact that this investment provides tangible and human links that are unique to this field (which I'll bet for many has had both positive and negative implications!).

Hey Guys,A smart investor would not attempt to calculate profit on a property based on appreciation, but taking that into account, broadly speaking, would it be a better move to invest in a market which has seen a large drop in prices such as florida/california, would a more linear real estate sale history of some of the more northern states in the US which have only seen small gain/losses be better?

In both cases I would have a professional company manage the property.Does that seem like a safe bet ?

J Scott - you lost this bet, but it seems that your first and second favorite teams will be competing in the upcoming Super Bowl - that's a look on the bright side for you :)

If the house then catches fire, you can bet that Gross Negligence will listed as a cause of action on the lawsuit.

When you or whoever purchases the property it will be calculated in and must be paid in order to secure a clear title of course.