If you use asking price you will always be offering about half of what they want and you will never get anything.Second: That formula is really for something you are going to Buy/Fix/Sell (You need that 30% for closing costs, agent costs, profit). if you are looking at buying something you are going to keep and rent you will most likely never find one.

I talked to a guy in California the other day who told me that they were looking for a property with the same similar formula.

I am going to share with you a simple 5 Part Formula of everything you need to do to get your "one deal per month" just like I told Rodrigo to do.  

some guys have come across a relatively simple formula for success in rental properties in Baltimore. buy a rental for between 5-25 in a "better lower income area"...Mill Hill seems to be popular among them, there's a few others around also. rehab the house to retail quality standards.

That formula will tell you how much you could possibly sell the home for.  

Many people miss that last piece in the equation.With a stringent formula like that, you'll probably need to work with a wholesaler in the area.

The concept of owning one or several houses or townhouses, renting it out, and making money sounds to me like a formula to success. 

Lena Truong To me, it's a simple formula.

The CUMPRINC formula that is used seems to just calculate the standard cumulative principal payment over time.

So, my bulletproof investment formula is the following: Maintain at least a 40% savings rate, invest your savings at >8% returns to outpace the real rate of inflation, save until you can afford to put a large deposit down, flip that into a low fixed-interest loan, to generate at least a cash-flow neutral investment return on an appreciating asset.