where to include rehab into analysis on a buy and hold

[Daria B.]

Hi,

Property came on the market that I've been looking at. Needs rehabbing and I'm looking to buy, hold, and rent.

I have a ball park on rehab and am verifying with a contractor to walk the property.

Am I on the right track for including the rehab into the purchase price to ultimately get my cash flow number, or, should I not include it into the purchase price and separately calculate when I would make my money back on the rehab cost given the cash flow from the purchase and other expenses?

thanks