So, I'm not sure that there is any benefit to plugging numbers into a calculator when you could simply use the formula above.

Say that the property appreciates 1%, how do I calculate the return on the mortgage payoff, obviously less future interest is needed to be paid because the bank now owe less of it and since there is an appreciation in the home my equity I'm building is then worth more.Any formula that would delve into this would be appreciated.

I'm not sure what magic formula is.

Yeah, many "Turn-Key" shops I talk to (nationwide) package deals into portfolios and sing a song of 20% and more IRR to lure.

You just need to make sure you factor the costs of borrowing the money from a hard lender into your formula so all of your numbers work.Transactional funding comes from companies who typically will fund a deal for one day.

Many wannabe's have read what ARV is, quote the formulas recommended, but don't have a clue what a contract says after reading it, let alone how to fill one out.

If you put true numbers into a long term formula, the better grade properties with "lower" cash flow will still yield a HIGHER return.All the best with your investments.

The more you understand about conventional business finance, the easier it will be for you to understand the unconventional finance methods you will encounter in REI.Although you will see some people on here and elsewhere who use all kinds of formulas to analyze RE deals, it's really not any harder than 5th grade math.

Your formula is beating Wall Street.

The standard formula for max purchase price is 70% of ARV minus Repairs.