I will take my 240K a year gross rents, subtract all expenses, including debt, and then look at my results.

I'll include my example property below:Purchase price: $349,000Total cash invested (20% down payment, repairs, closing): $104,800ARV: $400,000Cash-out refi at 75% (per mortgage lender): $300,000Correct me if Im wrong...I would subtract the $104,800 from the $300K = $195,200.

It has everything I need to smoothly and professionally manage our bookings.On OwnerRez, they have a setting that allows you to choose to add or subtract a percentage amount from either just rent or rent plus fees.

It reduces taxable income from the property and if that income becomes negative, it is subtracted from other passive income (other property that may have positive income) or ordinary income (if you make less than $100K or you are a real estate professional) or is carried over to the next year.Once the property is sold, all previous depreciation becomes a subject to recapture - it is added to the income and taxed at a special rate (20% or so - ask your CPA).

Add or subtract starting net worth amount.

Get the total value of the rehab and subtract it from the total value of your property fully rehabbed and that’s your offer right there.

From there you'd subtract off 65%-70% off the top for holding cost, etc.

you make 5-15k profit (subtract your profit in your negotiation) im not contractor, but if you were looking to flip it yourself, i would ask some contractors and get bids on how much it would cost. as far as the money goes, credit cards, loans. hard money lenders will give around 70% of arv as long as you can prove that the numbers will work. they have high interest rates though i am new to this, so if i am wrong on anything someone correct me

This is evaluating my hard work finding scarce deals and putting equal value to it.The way I see it, I had a lot more risk than the flipper would have.A flipper CAN do due diligence, find out an accurate ARV, and even subtract 10, 20, 30K from the ARV just to be sure, and calculate quite accurately what the minimum profit will be he will be making.He can then say yes or no to said deal, and no big deal.Me as the wholesaler have no such luxury.

With respect to this deal, the amount of equity is irrelevant, we look at the sale price, subtract any amounts paid as earnest money applied and down payment made (or any other credits) from that you subtract the amount of the PPFP.