Does the math work with the 50% rule?

Im in Tulsa, OK and I am probably biased, but from what I have seen, Austin, DFW, Houston are all secondary targets after places like CA, AZ, FL.

Further I'm with you that you don't calculate your hourly unless you plan on doing some contract work, but we all have to calculate our year end figures, and unless your math ability is seriously sloth like you damn well know what you are currently making per hour.The important thing, I think, is that it doesn't belong on a balance sheet, except in the form of your distributions.

Pretty close to the 40% rule of thumb for quickly evaluating a self-managed rental property deal.Quick math puts you at about $136/month in positive cash flow (as you showed ($1630/annually), for 11% CoC return.I think you've run the numbers correctly...will just be up to you to determine 1) if there are any upfront capex that will raise your initial cash investment beyond $15K, 2) if your monthly expense assuptions are about right, 3) if 11% is an acceptable return for your initial investment and your time (since you are self-managing).Sam

There's logic in this since if you need the buyer to get bank financing, the bank will do their own appraisal so if you set $90k but the bank will only lend on $85k you'll have to come down.I didn't do the math, but I hope you are cash positive in the first 24 months!!!

at 200 cash flow per unit he would need 21 units to reach 50K if my math was right.

So here goes... 70% of $150,000.00 is $105,000.00 $105,000.00 - $50,000 paid to bank leaves $55,000 $55,000 - $50,000 for repair cost, the offer is $5,000Sorry, but that math is flawed.

If I wanted to flip this as a turnkey and sell at around 11% ROI for a new buyer, I'd sell the property for $70k.All calculations are using solid math, real rents and a solid return for both the investor and myself.

Thanks, Matt Not sure on all of the math, but after reading it, i pegged you for an engineer...And then went back to your profile and man was I way off!!

The crawlspace is very open (mostly lattice and piers) and Sumter doesn't really flood much at all (and they are about to complete that fairly serious underground floodwater channel or whatever it's called, reducing flooding in much of the peninsula and rapidly increasing the de-flooding of the peninsula in case of a major flood secondary to a hurricane or tsunami I would imagine).