Hi Joel,Many thanks for your reply, and for the formula to calculate value based on gross revenue, NOI and a 10% cap rate - I will use that going forward.

I created an excel based deal analyzer spreadsheet and was double checking my formulas when this question popped into my head.ThanksDamon-------------------------Jeff wrote:"Damon, see you are a broker.

that formula means you never are on title, you never own anything, you don't have closing costs, etc.  

If the house is worth $200,000 and the loan is $100,000 and you simply paid off the existing loan, with out follow the formulas established in the Statute, you will receive fan mail from the Attorney General asking for your presence at a party being held in your honor, and oh, we want your attorney to come along with you.There are a lot of hungry attorneys out there taking cases of "distressed" homeowners pro bono, since you will end up paying their fees.

DCR (Debt Coverage Ratio) = For every dollar that you take to pay your mortgage, you make this number back in return (formula is Annual Rent / (Debt Service + Insurance + Property Taxes + Property Insurance + HOA if applicable)3. 

My goal is to make a list of formulas (i.e.

Moving forward, the formula's make sense to me.

Has anyone recently completed the House Flipping Formula course?  

The only way to know that the formulas are correct is to create your own from scratch and test the crap out of it.

I do see how most on here want to use formulas and percentages (X% rules, etc), but in reality, we start with the As Repaired Value on flips, we back out our desired profit margin, rehab costs, carrying costs, back out a contingency reserve, and a few other items to get a strike price...the maximim we'll pay for a property...and there you have it.