Property Investor
Professional Property Investment feasibility Calculator
LANDLORD RICHES
Famous 500 Formula
500 x Rent Weekly = Buy Property (Lower The Better) Then This Amount
I originated the very formula that is in this calculator. Though when you look at it now you will think nothing of it, but i guarantee you no one in the industry and or throughout the online Internet and property investment industry will you find anyone anywhere that’s created it. I know because i created it and it was not about anywhere. I created it from my own thinking. Obviously from learning math from property numbers first to derive the formula. But i make a simple version of how to do this.
I decided to title this calculator ‘Landlord Riches’ and the formula The Famous 500 Formula. Because I’m going to make my million using my formula. Ok so what is it? Next time you are driving around with your agent grab your calculator out and times the rent of the house times 500. That’s sounds easy enough. Now you could do that. It’s reasonably easy. Ask the agent how much this house could rent for. He might say to you 200 per week you then. Do a calculation using your little hand hand calculator of 200 x 500 = $100,000 if the agent selling the property has the property you are out front of for sale at $115,000 you could tell him that you would need to offer him somewhere in the area of $100,000 to buy the property for it to be considered for making positive cashflow. Less is better!
Now you look into the variables more as well. Can you paint or improve the house cheaply so that the rent could increase some? Not a lot but a little… say $10-$30 dollars extra per week. Then when you buy the property for $100,000 and you do your new Famous 500 Formula it will be 230 x 500 = $115,000 and you will be in Positive Cashflow territory.
The new calculation does not have to be done but i just did it to show you the variable numbers and it also did not have to end up being the same as the listing price it could be 220 x 500 = $110,000 if you could only get 220 in rent per week! But the higher your calculation comes in at above the property purchase price the more positive cash and or (Landlord Pay Check) you will receive each week after all expenses are paid to hold the property such as council rates, water rates, rubbish, the mortgage repayments etc.
These are not unrealistic numbers I have seen and am seeing properties bought for $72,000 and rented for $240.00 in June 2010 after a 10k renovation adding 40k in equity over 3 months. See the deals section in this web site for more exciting stuff.
LANDLORD RICHES
Beyond lies the famous Property Investor Calculator. Why? because this was a works i did hand coded for months way back few years ago when i was green at investing and it was a real blast amongst property investors. Anyone from back that day knows when it come to the surface.
See how much profit are you making on a deal? Are you going to loose money buy this house? What happens if it’s vacant 7 week or 10? How much stamp duty will i pay?
This is an investors friend. l’ve done thousands of calculations on hundreds of houses it could be thousands I’ve lost count. This is the trusting calculator i use for all my positive cash flow investments.
What’s the yield? How much are you going to make positive cash flow in your pocket each week? What will the loan repayments be weekly, yearly? What can i change to make a bad investment good? How much is the Reno costing? What does paying property managers fees do to my bottom line?
Look this calculator is the be all and end all of property investment calculators. There is no answer left unturned. The numbers don’t lie, if you find the right numbers to key into this software it will give you the correct answers and it calculates it right down to the very last cent. I like numbers because they are honest the numbers don’t lie. Plenty of people will lie but your down to earth numbers don’t lie.
That is why i had no problem setting this calculator is logged in members only access!
You save money on NOT paying for other calculators that do the same things. With new proven and easy ways to safely make a discovery about your investments. No harm to your bank balance later. You will love them i guaranteed it! Save and get results with this easy to use and understand “serious investors calculator” with simple English explanations and terminology and you can do it in a five minute run through. Less stress is good for you and your health.
There is no catches! Nothing. Have you heard of passion. I have a passion for web design and private investing in real estate. You think there is a catch? Go Away! I have made these for free and that’s it. I let you use them.
In January 2009 i reaccessed my property portfolios cash flow position. Guess what calculators i used. That’s right i used these very online calculators. Go somewhere else and pay $500 plus if you like but you will not do any better then what’s online right here. These have what you need to make you a millionaire as far as calculating simple residential real estate investments that make big money.
LANDLORD RICHES
Famous 500 Formula
500 x Rent Weekly = Buy Property (Lower The Better) Then This Amount
where is the calculator?
It’s there to members only now!
Enter an email and username to access the calculator by pressing to register from the homepage.
I am logged in but still can’t access it
You encountered a different problem directly related to a server at the host that died last week and left a disaster for me to pick up. It’s up there now.
Have you found the calculator useful?
Well done, have you thought of making it available as an iPhone app
Thank for your comment.
Yes i have thought of making it as an iPhone. Actually ‘Redwing’ a propertyinvesting.com forum member asked if it could be one a couple of years ago. I do not do much design using the program it took to make it now days. It is the program that would be capable of doing one! It’s an idea that is over due to be done and something i would look into in the future if i can get a chance but will be a ways off given my current situation.
this seems good hey!, i tried it on existing unit, (i mean i already did the calc. before and from memory it is pretty correct….)! will start using it I think, or at least try it again, because I get tired of my own silly slow systems….. thank you kind regards,
Very useful tool, thankyou. Can you explain what the figure identified as “solution” refers to, is it the rent x 500. Also how does one interpret the results of the calculator.
Thanks for commenting. That is right a properties rental amount per week times 500 is what i called Jaffa’s Solution at the time. I’ve since been calling it “The Famous 500 Formula”. Whichever way you calculate it… the amount, if less then the price of the property will come close if not be positive cash flow. The lower the purchase price below what the F 500 F adds up to the more positive cash flow you make each week.
To interpret the numbers at the end of the day! If you just focus on getting as close to exact numbers for everything keyed in the Weekly Positive Cashflow is a term for how much money (cash) you make each week by owning this property. After all expenses to run the property and pay for the Council rates, bills to own it etc are paid and the mortgage. If it outputs negative you will also notice that using the Famous 500 Formula will come very close to being lower then the price the seller wants for the property. This is then called negative gearing.
The “solution” to the solution is to buy considerably less then the output. The less the better for positive cash flow. negative gearing will have a whole different approach. They expect prices to rise over time to don’t mind being out of pocket each week to own the property. Hoping it goes up in time. Not my idea of fun investing in real estate.
When you look at the annual Cash on Cash Return it is the same as me saying i make 5% (whatever the Interest rate the banks are offering is) investing my money in the bank. CoCr is how much percentage you make on your money that is invested in the property (money out of your pocket that you put in) to buy the property including all the closing costs which is the deposit, mortgage fees, stamp duty and maintenance insurance etc.
Thanks for the question. Hope it helped you!
I would recommend for newbies to begin to getting your head around the numbers to first view and read this page:
http://forpropertyinvestors.com/blog/number-crunchers/quick-crunch/
It breaks down the math into simple step by steps and shows the maths working out.