You are free to do the math for the ROI.  

However, the math is confusing me and the tax deductions.

Always remember to do the math analysis and try to look at your prospective properties before you make an offer or at least try to add a clause in the sales contract that would give you the time (about 15 days) to make a detailed inspection and possibly back out of the deal without a penalty that will not hurt you too much.I am 59 years old and I found BP about a year ago and I am still trying to decide what to do.  

Always do the math analysis and try to look at your prospective properties before you make an offer or at least have a clause that will protect you for some time (usually about 15 days) to make a detailed inspection and possibly back out of the deal without a penalty that will hurt you too much.Right after you close on an improved property get an insurance policy that will protect you if there is a loss.  

Lender pays for house + closing + rehab = 125kSo to keep the math easy I now have borrowed 125k for a house.

You need to figure the NOI and the CAP rate for the area ( not the cap you came up with) then the math is like this: Purchase price = NOI / CAP 

My father has been in the buying and selling (mostly commercial) in real estate for about 45 years and he has taught me a little bit.Always do a math analysis and look at your prospective properties before you make an offer or at least have a clause in the sales contract that allows you the time (about 15 days) to make a detailed inspection and possibly back out of the deal without a penalty that will hurt you too much.  

However the math is simple… run an amortization calculator see what the taxes & Mort payment are, and then know what a flat in that area rents for, With that said here is 2 typical examples of Albany propertiesNew Scotland area 2 family’s run around 220k, 6k taxes, 1k insurance payment would be around 1570 a month, typical rentals would be around 1300Washington ave areas 2 family will run around 140, 3500 in taxes, 1k insurance would be about 1000 a month, with rentals being around 1000 a month.So you pretty much can break even in the not as good areas, grab a roommate or 2 and you’re really cash flowing.But don’t forget about the big savings of the low down payment and locked in low interest rate when you plan on exiting in 2-3 years

You can typically do the math from there. 

A preliminary Team includes Attornies, real estate Agents, CPA's (or accountants), Inspectors, General Contractors, and Handymen.Always remember to do a math analysis and try to look at prospective properties before you make an offer or at least have a clause in the sales contract that allows you the time (about 15 days) to make a detailed inspection and possibly back out of the deal without a penalty that will hurt you very much.