Originally posted by @Melanie Hartmann:I'm not saying ARV is determined by these costs but it is influenced by their existence as the sales price needs to account for covering these costs in some fashionProfit is determined by closing costs and commissions subtracted from ARV.

@Bryan Devitt that 10k is after subtracting the initial downpayment and 20k for rehab costs (doing the work myself) Using the 5%down/5%interest I would be at 28k after subtracting the initial investment.

I have arrived at a rough estimate of 2010's cash flow by using 2010's rent and subtracting PM fees @ 10%, Vacancy (using 2018 rates with a floor of 4%), and Taxes+Insurance+CapEx reduced by 15% (to account for inflation).

Or buy a rental property with what I have now and start cash flowing but continue to rent and subtract from buying the big one.

Sounds about right when you subtract the 10k down payment that leaves $9828.

This can be calculated by taking the gross rents, subtracting your vacancy rate, and multiplying by 10%.

I’m subtracting insurance, taxes, landscaping, dumpster, septic pump from gross to come up with noi.

Seems to work and get past Dodd frank.If they stop paying I do a simple eviction.I thought I could Also modify this by having multiple 1 year lease options with each successive one subtracting what was paid on the previous one.More work but similar idea.thoughts? 

They saw the property today and we are putting the paperwork together.The $20,000 is about 8.7% down on $230,000 - you take the sales price and subtract the down so $230,000 - $20,000 leaves $210,000 mortgage with a payment of $1650.

If you subtract the original mortgage payment from the new one on the cash out refi (assuming you were already covering that) the rental income would have to cover only the new rental mortgage and just the overage on the new/refi mortgage.Your answer is a simple math problem