Certainly if the market is appreciating rapidly, it’s okay to be a little bit less conservative with these formulas, because there’s a good chance the property will be worth more when you’re done fixing it up than it was when you started. That said, I’m pretty conservative, so I don’t think I would change the formulas too much.

The other big thing that could influence these formulas is interest rates. Because holding costs increase rapidly as interest rates increase, it’s important to be even more conservative when you’re paying more to borrow money. So, in a couple years, when interest rates start to rise again, be aware that you might want to be even more conservative!

Thanks for the reply.

1) My blog. I get about one email a week from local people who are looking to start wholesaling or bird-dogging, and want to know if they can help me out. I always say yes, yet most of them fail to follow-up.

2) Craigslist. The one ad I put on CL for my duplex actually generated quite a few calls from people looking for investors. They wanted to find out what other properties I had and if I was looking to acquire additional properties.

I’m looking to do the same thing in Denver in the next 2-3 months.