My calculations, in our market (they all vary, I am basing this on 1.5% rent per month of purchase price) based on a 60% LTV Non-recourse loan, shows we should make an annual rate of return of 15% without or 22% with appreciation (based on our 40 year average).I just thought I would mention this as I was not sure what figures you were coming up with as you try to decide how best to go about things.Dan Dietz

Correctly, it calculates all the leverage one has against their real estate investments w/out accounting for cash-flow, equity, etc.

what is a good rule of thumb to calculate carrying costs on a house we are rehabbing and flipping?

In my case I usually make it known it's me a single end buyer and it's cash.I do understanding the annoyance of having people visit every unit to kick tires.However, if the inspection - and here I don't even mean the actual structural mechanical inspection, I mean taking a look, an initial 10 minute look inside is not offered, and I have to basically make an offer blind, how would you calculate the offer number without having any clue whether it's gold plated inside or all rotted out?

I would keep them though cause you're going to have another furnace go up and it's good to have them on hand to loan out.I'm betting its something simple to fix like a thermocouple or an igniter.

I calculated the ARV to be 698,281.

I'll bet no other landlord has done that for them before.

The other option is selling it now and making just 10k after paying realtors and closing costs for buyer etc..If I sell in three years to avoid paying capital gains, I am calculating the mortgage principal will go down $2500 per year and the property values will go up by at least $5k.

From everything I've read so far my best bet would be to find and buy a duplex and rent half and live in half.

Do you always use 60% costs for calculating NOI?