OfflineMuch like the flipping offer formula I offered before you can follow the given equation:
"-" equals subtact
Gross Rents
- Profit wanted for each month
- Vacancy rate
- Maintence cost
- Management costs
= Highest amount you can pay for mortgage.
If this number does not mesh with your purchase you will want to lower your purchase or find a way to get more rents.
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If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125
I just used it with the numbers from my latest property and it came out almost at exactly what I am paying. Which, by the way, took me a heck of a lot longer.
Anita
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"FAILURE IS NOT AN OPTION"
I work backwards as well...
D
Don't Wish the Past, Create the Future! - DH
However you do this formula the key is to subtract the profit in addition to everything else that can be subtracted. Most of the time new investors will go after a property try and purchase below market and hope that they get a good return and monthly income. - They guess. Investing is difficult to succeed at if there is a lot of guessing.
If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125
I think I love you Nate. Simple, yet really effective. Things like this are going to make the process go much smoother and safer the first time/every time.
That being said, Where would the management costs come from?