Here is the quickest way that I Analize a property, so that I can make an offer in minutes(only if i have too)
The First thing you need to know is: 1) The ARV (after repair value) 2) The cost of the Rehab or Repairs 3) Closing Costs, thats basically it. If it's a Rental Property, then you would also want to know the Current Market Rent or Potential Rent.
How much should you pay?
If you are looking @ a FIXER UPPER, then you don't want to have any more than 70% of ARV (after repair value) Invested and this Includes: The Purchase Price, Repair Costs, & Closing Costs. Keeping a margin of 30% Insures that when you are finished making the necessary Repairs, After Closing Costs, You will STILL have 30% Equity then, you could sell it, Refinance it and pull out some cash on a REFI or you can LEASE OPTION the property.
Now if you are looking @ what is called a "Instant Landlord Property", then you could pay a little more than 70% of it's value. After all, there are NO Repairs to do on your part. The RULE is NOT to pay MORE than 80% of it's value & maybe 85% of value "IF" The Cash Flow is good & thiers a possible appreciation there.
YOUR HERO, SULLY