I decided to use the formula - Tax Value ($64k) - Repair (@$20 sq ft= $18,320 ) divide by 2 then subtract my wholesale cut ($5k) = to equal $17,840 offering price.

(Note that the P/I payment is equal to what this unit would currently rent for.)1st year income: $52,000 DP + $17,027.16 payments = $69,027.162nd year cumulative income: $86,054.323rd year cumulative income: $103,081.484th year cumulative income: $120,108.645th year cumulative income: $137,135.806th year cumulative income: $154,162.967th year cumulative income: $171,190.128th year cumulative income: $188,217.28(Note: the above are rough numbers because taxes and inflation aren't being figured into the equation.

I've also heard it referred to your "core skill set".Equally important though and often forgotten is that a dollar saved is worth far more than a dollar earned.

I require 3 times the rent in documented combined household pre-tax income as the norm; I will consider as low as 2.5 times if the present rent is equal to or greater than my asking rent, or if the applicant's credit report shows little to no monthly debt obligations.

I have seen them use it to value homes that were similar in square footage but one development sat on quarter acre lots and one sat of third acre or even half acre lots, no way a 1800 sq fit home in one is equal to a 1800 sq ft in the other.by using that method.I have had homes sell for 10% more because they were in one school district and homes on the other side of the road were in another school district, same builder, same age, etc.If you want to use $ per sq ft as a rough tool, always use the lowest price per sq ft for your ARV purposes and adjust for serious differences.

In other words, is the all-in cost (acquisition PLUS rehab) equal 65% of exit value?

In any case the two markets are equally distant from my home in Hampton Bays.There are deals that could net me more than 20% here on Long Island but they are not buy and hold strategies and would require more capital at risk.

When you retire you can cash in the IRA and pay stuff down if you choose.It is a good feeling to have investments that equal your debt.

Here, in California, we have the State Board of Equalization, I'm not sure what Missouri has.

Your net spending amount might be equal the ARV estimates after rehab, so get a grip on those anticipated costs and see what you will need for a rehab budget then compare them to ARV and see if you are getting a deal (and can sell for a profit once you choose to sell). feel free to get actual quotes if needed.