I guess I have scarcity mentality.2) Is there a formula for assessing how much risk is smart, not in terms of comfort level but balancing the numbers, such as: how much credit card debt you have and years to retirement.

What should my formula be for the best deal?

I just joined this forum as google pulled it up quite frequently.I am about to purchase my first investment property and would like to know the formula to find out the ROI.

what aspects to loof for to see a ROI - what is the formula, Total Rent - (expenses/month) = Cash Backis that a correct formula?

I will be looking out for an older house on a good sized lot in an area where new houses are going up and plan to build a new house on it.My question is, what formula do I use to consider if the house is a worth while project to undertake?

thanks all - now since its a numbers game I want to create an excel sheet I would like to knowhow to calculate mortgage monthly payments, what is the formula - I thin I have it, but when I do it on a webbase calculator - it is off by a couple numbers, I want to know the actual formula to determine my monthlyonce i have that I will input the expenses so I can know if this house is a great investment or notthanks

The bottom line is that the two formula's are the same.The 70% of ARV minus repairs method and buying with 30% equity is the same thing.

ok well thanks for at least giving ur thoughts...I agree with you abt using the formula, but I was thinking of some other kind of creative financing that you cud use when the homeowner owns the home outright.

In these areas the 2% formula is an excellent rule of thumb (I use it myself).

REI,The proper formula is 70% of ARV minus repairs minus your wholesaling fee.