After I started using J Scott's "appraisal packet" methodology, I have not had a single FHA deal have an appraisal issue.

I can see your probably expecting rents to allow you to live free, so maybe that is the plan and breaking even would still benefit you.In general, the methodology here is to buy a distressed property at a price that provides immediate equity upon purchase, just like if you were planning to flip the property.

But I think you should be pointing this out to the OP since he is suggesting this very thing in his methodology.

Otherwise, if you just setup a bookkeeping methodology (e.g. even something as simple as Excel) you don't need to open more bank accounts which means keeping track of more a/c numbers, ordering more checks potentially, etc. 

It is an art but it requires some science and a good methodology. 

This is the last section in my new business plan methodology.

Here is what that statement should have said: That said, other than perhaps Bob Bowling, nobody here is going to fault you for factoring it into the NOI calculation, and for most people's needs, capex is something you're going to want to factor into your NOI.Again, I apologize for my mistake.For the record, this thread is about how to calculate return metrics, not about accounting principals and methodology.

He explained very clearly the process and methodological!

Plus, Seth Williams has an amazing amount of information as well so in the same manner you wouldn't buy just one book on real estate investing from one author, you should probably investigate all the different angles and methodologies of different land investors.  

Personally I would be wary of using their service without understanding how thorough their checking actually is, and their methodology.