Now subtract out your wholesale fee and that is your max offer.

If we're talking a few hundred dollars after subtracting out the deposit, I won't worry about it.

I will add and subtract once I have inspected the property, but based on this information is it worth my time.

So, it you want $5000 for your fee, you would subtract another $5000 off the offer price.If you have additional costs (e.g., double closing, transactional lender) you would have to subtract those, too.If rehab is needed, and it always is on this sort of deal, you have to subtract that amount, too.In many places finding a deal that good is very, very difficult.

I use the 70% rule , subtract rehab costs etc...

You can probably subtract 5% from that for each 30 days that elapses, but again there is a difference based on insurability status, and they'll take less for a more distressed (i.e. uninsurable=unfinanceable) property.

In this case you could roughly assume $300 cash flow and then subtract any holding costs.

The quick and dirty way to come up with a rough cash flow (because you can't trust all of the seller's numbers) is to use the 50% rule and then subtract out any landlord paid utilities.

Originally posted by @Pete Thomas:I had trouble getting the LOC on an investment property and was limited to 80k at the time based on my debt-to-income ratio, which can be high depending on how rental income is calculated.Pete,If you subtract all direct costs for your rental property (including debt service) from 75% of your rental income, and have money left over before depreciation, then you have income for your DTI calculation.

Subtract the 3k for our small direct mail campaign and we are still over 100k in net worth increase.