Chris, there are also some Excel forms available on this website. http://garytharp.com

Sat Apr 12 2008, 16:21

The only formula there is for any form of investment is - "buy low, sell high". In other words, can you actually sell it for more than you paid for it, and how cheap can you sell it for a still profit? These are vital questions. And if you need a loan to buy the "investment property" and you plan to rent the place out, then you must calculate the lowest rent possible to earn a monthly profit and pay your mortgage.... PLUS, you must be able to set aside "maintenance" money. All of this MUST come out of a "below average" rent payment.

I say "below average" because you don't want to base a loan on anything current because it may go down against you, or it may go up in your favor... but if you plan for the low end and you can see a profit there, then its a good investment. Never plan "best case scenario", but "worst case scenario", and that will tell you if it is worth it. There is no real secret formula for this, in fact, it's quite simple. Always do the math very, very liberally!

Khazeem Asadullah

Sat Apr 12 2008, 16:18

HI Chris, here is a link to a simular question that was answered here on Trulia:
http://www.trulia.com/voices/Market_Conditions/I_m_looking_t…

Sat Apr 12 2008, 14:50

Have you ever read the "Millionaire Real Estate Investor"? If you go to this link and look under that book you will see various FREE downloadable spreadsheets such as "Buy & Hold", "Buy & Sell", "Criteria" and several others. I believe one of them will have what you're looking for in terms on investing. There are also downloads regarding fix-n-flips. http://www.millionairesystems.com/msys/FD.html#MREI

I work with a lot of investors and bank owned properties, if you're looking for some deals give me a ring.

Sat Apr 12 2008, 13:16