You don't have to lease from Xerox or IBM, just keep accurate paperwork, write checks and document the transaction.Buying real estate is a tremendous boon to wealth creation.

As you get familiar with the numbers, your ballpark will be fairly accurate (though always lower than expected, add some contingency!)

However, breaking it down to this level of detail does not give you a more accurate estimate.

Hi John,The very first thing you need is an accurate ARV (as repaired value).

*Are the repair values accurate?

8 Unit Apartment (Accurate as of 3/1/09)The 7 two bedroom units are at $695/mo and the efficiency unit is at $525/mo. ** All tenants are on month - month leases.** The average rents for 2 bedroom units in the area is $733/mo.This property is available at only $499,000.It is the lowest priced apartment per unit in the area.Annual Income: Gross Scheduled Income $64,680Vacancy (5%) $3,234Other Income $1,200Gross Operating Income $62,646Annual Operating Expenses Property Taxes $6,670Insurance $1,822Property Management $0Maintenance & Repair $1,000Utilities $5,950Services $4,280Other $1,000Annual Operating Expenses $20,722Net Operating Income Gross Operating Income $62,646Annual Operating Expenses $20,722Net Operating Income $41,924 Annual Cash Flow Before Tax Net Operating Income $41,924Annual Debt Service $34,818Cash Flow Before Tax $7,105Initial Investment Down Payment (25%) $124,750Closing Costs (3%) $14,970Total Investment $139,720Proposed Financing 1st Mortgage $374,250Interest rate 7%Amortized over 20 yearsCap Rate 8.4%

HVCC Results in Poor Quality Appraisals and Increases Costs for ConsumersIt is important to ensure that home appraisals are high-quality and accurate.

Thanks for clearing that up for me Christian,So once I find a prospect, I use the 50% rule.....once the property passes this analysis, (walkthru) how/where do I get more detailed numbers in order to get a more accurate analysis?

He's quick accurate and always accessible.

Understood, we do the first calclulation (with %) just as a quick 'is this worth our time', then break it down with #s and more accurate repair numbers.ARV is easy, I'm an agent and have been running accurate comps for years .