It's far more analysis than necessary, but we're software geeks and this was a way for us to become intimate with the mathematics of the analysis.On smaller residential properties (1-4units) the {discounted} CoC over the planned hold period of the property is our lead metric - once the thresholds required for purchase & financing are met for all metrics (DC, BER, PI, etc), but this needs to be tempered against many other {not easily quantified} factors: location, state of (dis)repair; can we expand; is their a future higher use for the property.On the commercial buildings (5+ residential or mixed use ... we have yet to venture into retail or office) the CAP rate is more meaningful, along with the CoC, but you still have all the subjective aspects as well: location; opportunity for forced appreciation/performance improvement; financing availability/terms; building age and repair; environmental, etc.So, as Duncan was telling us yesterday ... it's not that simple ;)

I'll remind her that if we do a live in duplex flip and house hack at the same time that her med school student loans and my law school student loans will be eliminated in 2 years or less mathematically. 

I have two possible deals in the pipeline that will make money, according to my mathematical projections and ARV calculations.

I want 24 buyers... calculated from a mathematical equation i developed.

You're not buying a mathematical share of a corporation or a virtual slice or a business.

Actually there's no such this as CA vs out of state.This is all just mathematical equation dude.

Other factors which are not easily mathematically calculated is that a nice place will likely have less vacancy, less maintenance calls, is more 'rentable' (faster) and decreases liability... so in the back of your mind you should keep this formula in mind but a 12% is not too bad.

An investment needs to make sense mathematically.

My background is mathematics, engineering, and education.  

History geography, mathematics, science, and literature are all essential skills that you will use in your real estate investing career that will amaze you.