Its impossible to predict all expenses accurately.Cap rates aren't relevant for SFRs since they're priced by comparables.

I would research what the other REO's are selling for compared to ARV (after repair value) and how long they were on the market.

So unless cash was being paid by the investor I cannot assign the contract over to the investor.How would I assign these contracts if the investor was using traditional financing.

Chris thanks for the info, chris i also found out that my thoughts were correct.there is no set value, the value of the property is based on what makes sense for you to achieve your investment goals (that's it).some will say to not rely on the cap rate for your purchase decision (which i agree), but to use it to compare to other similar properties that have sold in the area, which is actually not reliable because 1. there will be less comparables, 2. how properties were purchased vary from deal to deal, 3. the inner workings of most transactions are confidential.so the best way to analyze a deal (while using cap rates) is to add your financing terms into the picture (principal + interest and etc) and calculate what the deal is really worth to you.see the normal NOI/Asking price = cap rate is based on if someone were to pay all cash, this is the return they could expect first year, but paying all cash for a property doesn't happen all that often (bank funding will be use for a large portion of that cost).so i found the best way to use this formula and analyze my deals is by look at all factors but also including my financing terms with my desired return objectives into the picture to get a proper view and value to me.

In San Diego County (and other counties shortly), you can go to ***** to see if you can likely save money with such an appeal and to assist with comparable identification and paperwork.

Also, if the auction method doesn't work, you still have plenty of time to try other, more traditional marketing strategies.Both of these deals don't seem to have very much room in them but then again, you are not looking to make a killing which is a very good strategy in this market.

., but rather compare to other similarly sized 3/2/0 properties.

Compare the two so you can stay up to speed with current pricing in your local market and viola!

I take that to mean he is looking for more upside than just 10% interest.My realtor (c) said that if the investor put up 100% of purchase and rehab costs, that we should split profits (cash flow and equity upon sale) 40% to him and 60% to me.How does that compare to the other partnership agreements out there?

This is calculated by taking the Gross Sales Price that the home is resold for, less (say $400,000) less all costs.Tenant and Landlord agree that the home will be sold at an amount that may be more or less than area comparables.