Over the last few days, I've had a ton of trouble with my lender and my house almost fell through so I changed my goal into first getting my house and then have to re-evaluate haha.

I’ve struggled with how to evaluate it... more like an apartment complex or as individual homes has been my hang up.

Either way, definitely figure this out because it could get tricky and your offer should take this into account.Now, how to evaluate the deal.

You don't need to track it every month, but certainly every 2-3 years evaluate if keeping the property make sense.Here's how you calculate ROE: Yearly Cash Flow / Total Equity.Yearly Cash Flow is after all expenses, including CapEx and Debt Service.Total Equity is [ARV - Mortgage Balance].

But because I got two good inspection reports back, I didn’t think too hard about it.After I got some quotes for repairs and a new evaluation of the property, I countered with 85k, he said he’d accept it if he got to keep the security deposits.

That is what an appraiser from a bank will use to evaluate the value of a property.  

Secondly I would perform a self-evaluation to determine the properties you can purchase by evaluating your available funds, credit etc.

As mentioned, the product i am currently using is a short term LOC and is evaluated every year by the lender.

I'd start by evaluating what each of you is bringing to the partnership. 

It's really hard to anticipate what the appraiser would evaluate the property at which such huge margins.