Or however you choose to make the determination, try to stay consistent.Most importantly, talk to your CPA...he or she will likely have their own system that they use, and going by their guidelines will likely make preparing your annual taxes a bit easier.

It is based on job growth and loss, fraud, etc.Rank City Annualized Home Price Appreciation1 Bakersfield CA -16.9% 2 Stockton CA -18.7% 3 Fresno CA -16.2% 4 Warren MI -7.1% 5 Grand Rapids MI -5.8% 6 Riverside CA -16.8% 7 Sacramento CA -15.1% 8 Detroit MI -0.8 9 McAllen TX 2.6% 10 Youngstown OH -9.6%Looks like it might be a buyer's market in California and Michigan this coming year.

Tennessee is also a zero income tax state but they charge $300 annually for LLC's.

Look at the success of so many other SaaS companies that are offering monthly or annual subscriptions for their services and have billion dollar valuations.

The annual cash flow for this would be ~$3,630.

However, I don't see well managed notes bringing back less than 10% generally, so I figure the return I would be seeing is likely 10% annually.  

For additional info, the crime maps show that there was a murder right across the street in May…So all that aside, here are the #s:Asking Price: $110,000 (dropped from $125K)Offering Price: $90K (based on lack of garage, seller’s expediency, past murder, vacancies and upcoming winter, as well as what I can afford to pay per month)Rent: $950 (once rented); Annual = $10,830 (5% vacancy)Operating Expenses:Water/Garbage - $1380Gas - $106 (altogether; split between two units)Electric (separate meters)Insurance - $1500 Property Tax - $1,666Repairs (if needed) - $1600=$6252NOI: =$1998 Annually Debt Service:$7104Cash Flow:-$5106 or -$425.50 a monthAs owner-occupant:$592 – MORTGAGEUtilities – $375$6 + $150 + $139 + $86 + $50 (electric; estimated)$1017 a month…doesn’t include repairsPROPERTY #2The second property is different.

Just not to the point where I can't stop working and can have a decent quality of life.Growing up my father had a prestigious job in his field of work, which led to a very large pay check annually.

I have my own money as well as other investors' held under the LLC, who have gone in on my projects and are getting their promised annual percent return.  

This is Calif and rents are significant, whereas when researching Nashville, rents were in cash, week-to-week, and low.When I was looking for my MFU, I learned how to calculate NOI (an annual number) as a means to make a go/no-go decision on the purchase