To keep the math simple, if each of the 5 investors placed $40k into the deal which was for $200,000, then your first deed of trust would be for $200,000 with each of the five investors having an undivided twenty percent interest as beneficiary.As for your offer, Jon made a great poimt.

They can do the math themselves.

Because this information has not been disclosed or readily available, I suggest doing your homework and making sure you aren’t one of those who become a victim of Blackstone, the new “Darth Vader” of the real estate market.Source: http://nreionline.com/single-family-housing/blackstone-secures-21b-loan-home-purchases

Dev Horn thats how we did the math as well.

Al, note that it requires quite a few numbers to be placed into that math.

Does the math work with the 50% rule?

Further I'm with you that you don't calculate your hourly unless you plan on doing some contract work, but we all have to calculate our year end figures, and unless your math ability is seriously sloth like you damn well know what you are currently making per hour.The important thing, I think, is that it doesn't belong on a balance sheet, except in the form of your distributions.

Pretty close to the 40% rule of thumb for quickly evaluating a self-managed rental property deal.Quick math puts you at about $136/month in positive cash flow (as you showed ($1630/annually), for 11% CoC return.I think you've run the numbers correctly...will just be up to you to determine 1) if there are any upfront capex that will raise your initial cash investment beyond $15K, 2) if your monthly expense assuptions are about right, 3) if 11% is an acceptable return for your initial investment and your time (since you are self-managing).Sam

There's logic in this since if you need the buyer to get bank financing, the bank will do their own appraisal so if you set $90k but the bank will only lend on $85k you'll have to come down.I didn't do the math, but I hope you are cash positive in the first 24 months!!!

at 200 cash flow per unit he would need 21 units to reach 50K if my math was right.