Regarding the first two points 1) Source of income as a protected class does not mean you are forced to rent your units below market rents.2) When you ratio comes into play you subtract out the portion of rent the housing program pays, so they need to make 3 times their portion if the rent.Source of income is a protected class in most of the areas I do business and it's not a big deal at all.

Once you have a good idea - you will need to subtract ALL of the expenses.

Subtract $1250 for rent/utilities and $220 ish for 10% kickback and that leaves me a monthly profit in the ballpark of $700.

I found a property in San Antonio, TexasSo far, these are the statistics:Appraised: 72 k Improvements: 61,620 kLand market: 10,380 The way I understand to check on whether or not this is a good deal (I have not gone out to see the property nor have I spoken with anybody) is the following:20% Higher than the appraised value; thus: (72k x 0.20) = 14,400 then I add this value to the original number, thus 72 k + 14,400k = $86400 k Then I would subtract 30% of this value ; so 86400 - 25920 = $60480The last step would be to subtract the improvements; thus in this case our improvements cost more than the value I received...so this wouldn't be a good deal where there is any money to be made. 

Then Figure out your gross annual rent and then subtract all of your expenses from that.

Determine your approximate Rehab costs and subtract it from the ARV to get your offer price.Use all the negative things (Vacancies, poor condition, Rehab/Pending CapEx, lack of data) to justify your discounting the price.  

OK, so the "inventory" of all of the year's real estate purchases in the s-corp are not added up and then subtracted from the year's profits to get the net taxable income?

So you need to remember to subtract that fee from your calculated max offer and hang there.   

The market monthly rental income $5325 for 9 units seems low (unless you've subtracted expenses and taxes already).

Plan on investing there as well.I came up with that number by adding all his expenses together including his mortgage and subtracting that from what he would make in rents.Annual Expenses: $13,406Annual Mortgage: $6,972                            =$20,378Annual Rents Collected: $21,300$21,300-$20,378=$922$922/12months=$76.83/month net income$76.83/2 units =$38.41/month net income per doorI'm pretty sure that's how to do it.