Yes, your math is correct.

I'm a bit unclear on the math of what cost property, relative to my w-2 makes sense in terms of offsetting my income. 

If you don't do the homework, you will give them the impression you may not be up to doing the homework with real estate investing.

It's just math, know ALL your numbers, YES, it's that simple. 

I don't know where the bar is located nor do I know if the property is worth $3 million, you have to do your homework on this project.

Make sure you do your homework and don't over pay.

Use this equation to evaluate how much to offer on a property:Max offer = After Repair Value x 70% - Rehab BudgetDo you homework on comps to get a good idea on the ARV. 

I wonder if it would be legal to simply do the math yourself?

Foreclosures Auctions are a great way to buy and create cash flow and equity, but as you know you need the cash to buy and pay settlement cost.Be prepared when considering purchases at the court house steps, do your home work first:Years ago I would go to the court house (before computers and the internet came into my life) to look at the foreclosures filings.

Pretty simple math or am I missing something in your logic?