Practice using these formulas daily on properties in your anticipated area.  

The rule of 72 is a formula for determining how many periods it takes to double an investment depending on an interest rate.so for you, you would have 72/(rate of return annually) = 1(# of years).

I learned a few things in the class, such as the formula that they use for property evaluation, but not much was new to me as I had listend to every podcast that I could find prior to going.

Is there a formula?

Good Morning BP community, first let me say that I have been following the forums, pod casts, blogs and everything on here for about a month now, and I love this community, so much amazing information.I am a new investor in Florida, and I have been looking at rentals.I've read about cap rate and I believe I understand the formula for calculating it, but I still have some questions about how valuable it really is and if cash flow is more important?

I'm not saying you couldn't buy a property and have a fairly easy time renting it in Knightdale, I'm just saying that I don't think that area has the same investment potential as these other areas (using the formula I just described). 

This house does not fit my formula for a flip or buy and hold.  

These agents do not understand how much it costs to care for the property and make a positive cash flow from the rents after all expenses are paid.I use the following formula for evaluating rental properties for a positive cash flow because I lost money not doing it this way.I do not use CAP rates.They are a lie.The mortgage interest is not included in the expense figures.This formula uses Gross Monthly non-section 8 rents which equal 1% of basis.Example:$1000 per month in building rents is equal to $100,000.00 basis.The rents at 1% of basis will pay back the entire investment purchase price, the payment to service the loan, principle, interest, taxes, insurance and the down payment money required by the lender.Now you must Subtract 25% from the “Basis” to pay for management, vacancy, repairs and expenses of the property which equals $25,000 subtracted from $100,000.00.We now have a purchase price of $75,000.00Now you need to subtract all needed, deferred maintenance repairs from the $75,000.00 to bring the property into rent ready condition and mechanically up to date for your final purchase price.If you have $25,000.00 in repairs you would subtract it from the $75,000.00 for your final purchase price of $50,000.00.In negotiating the transaction price I only use the current rent role.

Thats where the formula tends to change a bit.

I feel like I see a lot of formulas specific to people who are wholesaling properties under $300k and out here most properties are over that price point.