Originally posted by **********:Mathew wrote: "I'd like to know your system or how you cashflow on your properties" I BET!

I took his financial calculator class and it was great.

For commercial units, operating expenses should be calculated and obtained from the gross income/cash flow.

You may make it out ok, but I bet it won't be as much fun as you thought.

I bet that he will be just fine!

It seems most times when someone is explaining their method behind obtaining REOs they go into great lengths about different calculations in hopes of making something so simple seem harder than what it is...

Calculate all of your costs, price in the value of your diy time, realtor costs, and then add in expected profit to find the highest amount you can pay for the house.

Find out the "cap rate" on similar buildings in the area, figure out the expenses and projected income, and calculate the value.Whether that's what its really worth to buy and be profitable is another question.

excellent points....I kind of forgot that the HELOC rate could change....mine has a locking option as of yet, so that could help me hedge my bets...thanks for the reply.

With appraisals and BPOs, only a few comps go into the calculation.