So far I have not had to deviate from that formula but it is difficult to keep the contractors busy.

What is the formula for percentage rate of ARV.

That said this site has a YouTube video called The Lightning Fast 5K Formula which will give you step by step instructions on how to use ListSource.

I would let the tenant know that he has cause serious damage to the whole interior of the property and needs to do some cleaning to remove the stains on the windows or pay you to hire someone to do this work, if there are carpets they will most likely need to come out and of course the paint issue, tsp will remove the majority of the stains but will still need a stain blocking paint, usually a oil based product, but there are some good latex formulas out that do all in one or two coats.

Assuming that both sides would rent for $800 then this duplex runs at a 1.21 DSCR (Debt Service Ratio)My minimum requirement is a 1.20 on my single family homes, but for a duplex this formula works fine.

They are not using the formula you are (get back what we paid).

This should be your offer and make sure you include the agent cost in your formula.

I have a certain threshold depending on return but it is not a mathematical formula, just a feeling based on my knowledge and experience, which of cause is constantly changing and hence the "risk factor information" is constantly being reevaluated.How do you account for risk in your evaluation of potential investments?

As far as running the numbers I haven't yet.Do you have a type of spreadsheet formula that you have?

My dead simple formula's for estimating income and returns for rentals are:cash flow = (rent * 50%) - P&I paymentcash on cash return = annual cash flow / cash invested.Low down situations can produce a higher cash on cash return number, because of the small amount invested.