And this is not including rehab expenses.Am I calculating everything correct?

My basic return formula looks like this: (Gross Income -Adjusted Expenses) / (Purchase Price + Required Improvements) = Return on investment.Shortened up: NOI/Cost=ROIAssuming the building you are considering has no deferred maintenance and assuming the seller’s Net Operating Income (NOI) figures are correct then to obtain a 9% return you would want to buy the property for $24,151/9% = $268,344.If you choose to finance the property then the terms of your loan and the amount of your down payment will determine what your return on your invested cash or ‘Cash on Cash” return is.

This being my first deal I wasn't sure if that was the correct thinking.Thanks for the quick reply and good luck wishes

Melodee ** auto correct

You need to know how to identify proper comparable properties and make the correct adjustments.

I think Will Barnard is absolutely correct.

I didnt find the correct place in this forum to post prospective deals (links...) so that experienced biggerpocket(ers) can give their opinion, is there such a category ?

:)Thank you for the correction!

If it was permitted and inspected, you're fine.If you're not confident about your ability to do the rehab correctly, hire a general contractor, licensed subs, and get permits for everything.

., (who is not in Calif.) and the others who were kind enough to share.Obviously, being a trade association, we consider ourselves the "white hat" guys and already believe we are doing things correctly, but we know even our practices can be greatly improved.