Robert_WV 0 Report post Posted November 23, 2009 I am looking at property that after ALL expenses,(taxes,ins.,vacancy,other exp.mgt.) the bottom line net profit is $47,400 per year. gross is $61,900 what would you consider the value to be based on profit. Mixed w/one duplex, one single family and 10 unit trailer park. can't remember the formula for calculating asset based on net value = price. own several properties now. any help and always an opinion...appreciated.thanks rob email romine@midohiovalley.com Share this post Link to post Share on other sites
Jonathan RexfordFL 8 Report post Posted November 23, 2009 What is the rate of return are you looking for? Just a simple 10% return would put you around $475K Share this post Link to post Share on other sites
Robert_WV 0 Report post Posted November 24, 2009 I was looking at around a 20- return on dollars and trying to nail down good offer based on net . Actually these properties are mine and have an offer on them which is way whacko based on real no.'s and the net is actually low. it is really around $51k but wanted some other opinions to show this guy how far out he is. i am actually offering it to him for $280k and he is bucking trying to buy it for nothing because he is putting up around $75k. thanks for your input Share this post Link to post Share on other sites
Jonathan RexfordFL 8 Report post Posted November 24, 2009 Take rate of return and divide by cashflow and that will give you a number. If 51K is the number and I wanted to make 20% NET then my offer would be $255,000 51000/.20= $255,000.00 Share this post Link to post Share on other sites
Robert_WV 0 Report post Posted November 24, 2009 thanks so much. it has been a while since i used the formula and i could not remember it for the like of me. thank you for refreshing this tired brain. have used it a few times in the past, but have not bought any properties in over 3 years. i got an email about this place so i am glad i stopped by and think i will hang around this one. are there many people in these forums or do they stay busy. Share this post Link to post Share on other sites
MichaelC 160 Report post Posted November 25, 2009 Hi, Robert, and welcome aboard. Glad you found us.I would have to say that board traffic has definitely slowed in recent times, much like the real estate we all like to talk about. I keep my eye on other sites and I have noticed the same pattern. Even the big dog of real estate sites has slowed considerably. As real estate prices tumble and the economy falters, folks just hunker down and ride out the storm, I suppose.In the meantime, we still have our core group, and a friendlier, more helpful bunch won't be found anywhere. Share this post Link to post Share on other sites
Robert_WV 0 Report post Posted November 27, 2009 thank you both for your input and the welcome. like i said, it had been a few years and could not remember the formula. i hope you all had a great thanksgiving and michael...if i ever make it to fl. we may have to have a lasangna cookoff. i am known to make a pretty mean one w/killer sauce. Ha. have a great day and holiday season. have you guys noticed any change where you live. i live in a small town in wv and just last weekend saw two businesses that have been long term being auctioned. Share this post Link to post Share on other sites
MichaelC 160 Report post Posted November 27, 2009 Did you just issue me a throwdown! Are you Robert R, or Robert F? As in Bobby Flay? Anytime you're in town, pal, look me up. I take no prisoners. Have I noticed any differences down my way? Absolutely! From retails stores being empty, to foreclosures every third block, to an entire mall that was foreclosed on being purchased by a group from, where else, China. Lots of empty storefronts, too. Share this post Link to post Share on other sites
Robert_WV 0 Report post Posted December 15, 2009 Hey guys...hope all is well with you and that you are ready for a great Xmas. Just wanted to give you an update and let you know we are under contract @ $220k for the properties and he is paying me $500 mo to collect rents and keep things moving for him. We are making a good bundle after payoff so all is good. thanks for your input and refreshing my brain a bit and wishing you both a very Merry Christmas Share this post Link to post Share on other sites
