My calculations are based on 2 sets of numbers - the numbers the seller has provided, and my own calculations accounting for 5% for vacancy, 5% for repair, 5% for capex, 10% for property management and actual costs for property tax/insurance.I am trying to decide if this deal is worth pursuing or if I should walk away due to the premium on the homes.

Upfront expenses and monthly payments must be considered when calculating the return on your investment.EXAMPLEYou cash out $100,000 of your equity and use this as a down payment on a $400,000 investment property.

Break-Even PointYou've calculated that it would take 34.5 months to break even, which means after almost three years, you'll start benefiting from the lower payment.If you're planning to hold the property long-term, say 7-10+ years, then it might be worth it to buy down the rate, as you'd have a lower payment for the remainder of the loan term, giving you more savings in the long run.2.

The downside of trying to get a mortgage after you have a rental is that you can't walk into any bank because they do not understand how to calculate DTI correctly. 

Jeff Bezos saved over $600 million in taxes when he sold Amazon stock this year, just because he moved from Washington to Florida.Inflation/Interest - Inflation calculations have been changed.

Do I put in 0 for property taxes when using the calculator if I will have a mortgage?

Calculate the costs of the loan and the entire project and calculate your expected profit.4) Make the offer on the one you feel best about and off you go!

They know their rate.The stock forms from my CPA include a tax comparison page that makes it easy to calculate the effective tax rate and compare line items year over year.

If my calculations are correct, I will be paying about the same with the current rents in place.

BP offers a calculator that you can use, or just use a basic excel spreadsheet, or even pen and paper is fine.Decide what you want to invest in....Flips, rentals, development, STRs etc...In terms of finding deals...you will have to put in some work.