Number crunching

So obviously everyone has their own way to work out whether or not an investment property would be good for them. But what are the methods everyone uses to assess a property?

What formula/s do you use to find out whether or not you think the property would be a worthwhile investment?
Do you use different formulas for CG than you would for yield?
Does anyone use special programs? Microsoft Excel for example.

If everyone could help me with find as many formulas out there as possible that would be awesome!
If anyone would rather start a conversation rather than add on to this thread, please feel free!

 

Many way to skin a cat but I do enjoy looking at comparable rentals and working out what the price is from there as another form of discovery on price.

Programs use PIA by Somersoft and excel.

 

Basically there is only 1 criteria: Will purchasing this property get me closer to my goals?.

I don't really have a formula to determine that, its more looking at some fundamental factors:

1. Where does the state sit on the Property Clock
2. Will I be able to purchase this property below market value OR purchase it at market value then do X to it to manufacture equity.
3. Is the stock I am buying, in demand for the demographic of the area, appropriately distanced to the CBD and low supply available.
4. Does it fit into my risk profile