@Brian Scott don't forget to incorporate the tax savings into your calculations too!

This is rent minus mortgage PITI and property management fee 10% (I don't include capital expenses in that calculation since I already set aside a reserve fund and the HVAC and water heater are 5 years old.

I talked with our CPA about doing a partial disposition but he thinks that "the insurance proceeds won't be taxable assuming all the money was put back into the property" and the "partial disposition is probably less favorable than doing a direct offset and just not putting new assets into service".I understand the first part ("the insurance proceeds won't be taxable"), but I disagree with not doing the partial disposition.

**Questions:**- I have no idea if my calculations on what the my costs for leasing the house are anywhere near accurate.

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.

Make sure to factor in possible rate hikes when calculating your future expenses.Regarding your offer and projected numbersOffer Price Offering $525K on a property listed at $619K is a significant reduction.

So I think one thing you might need to add to your calculations is the projected value of the house over time and any anticipated rent increases.

Upfront expenses and monthly payments must be considered when calculating the return on your investment.EXAMPLEI will provide details below, but here's the short version for those who hate to read or do math.

Understanding where the market is can help you make better decisions.Use Helpful Tools:Real Estate Apps: Apps like Redfin and Realtor.com offer a lot of info on property values and market trends.Deal Analysis Tools: Consider tools Biggerpockets calculator, they offer a variety of calculators that are very easy to use! 

So far with the properties that have looked promising we have utilized the calculated NOI / Cap rate to determine the value and every one we have done has come up way lower than the asking price and in one instance came up less that what the current owner paid for the place initially.