You are encouraged to use this formula when evaluating property management companies.How to calculate Effective Management Fee?

Hey DerekI know pricing could be (and probably is) much different in the Detroit area, but would you mind sharing your formula...Thanks

We've followed this formula, and have seen improvements over time.

Here's a general formula that I've seen in several places that I intend to follow:Maximum Offer Price=(20% Profit)-(10% contingency)-Repair CostsExample: Repair Costs=5k...I would offer no more than 65k on a 100k fmv home

I think it is a formula you can't lose with!

If I want to tracks trends in a particular residential neighborhood or zip code one way to do it would be to:(1) keep track of the number of homes put up for sale per month and (2) keep track of the number of prospective buyers who visit those homes per month and(3) keep track of the number of homes that sell per month.Applying simple math formulas to those those numbers I might find some insight into what is happening in terms of demand and supply.

It has some great outlines and makes formulas very simplistic.

As for percentage on returns - I do not know of a formula on that.

Here would be the formula you should factor this deal with and you decide.ARV (use only sold properties for your values, do not use the local asking price)multiplied by 70% (Thsi can be somewhat flexible if you arent using hard money and the deal warrants a deviation.

So, what is the magic formula that lets you get a house under contract with 1,000 earnest money in your bank and not a penny more???