When you have the sum of those operating expenses, you will subtract them and an allowance for vacancy and credit loss to get what is called the Net Operating Income (NOI).

My NOI would be 13,156 and I got that by subtracting 10% for managing, $1000 for insurance, and taxes where $1612.

Subtract out your current mortgage and any payments for your revolving accounts and this will give you the max monthly PITIA that you can afford for the investment property.

The numbers:FMV: 90k (I'll assume you've used comps or an appraisal of some kind to determine this)Asking Price: 77k or 85.56% of FMVRepair costs: 0 (just assuming this for right now)Down payment: 11k is 14.29% Finance: 66kMonthly Debt service: 66k @ 4% for 30yrs = 315.09 monthlyRent: 1,100 monthly (also assuming either A: it's already rented or B: these are fair market rents for the type of property).Applying 50% rule: 1,100/2 = 550 monthly, subtract 315.09 = 234.91 net monthly income.

Even after subtracting a $2,000 assignment fee I still arrive at a number above the fair cash value for the home which is $14,000 (which I received from the local PVA).

After four years, you would have 7/27.5 (about 15%) of the original basis of the improvements (not land, if that's relevant, may not be for a condo) in depreciation that would subtract off your basis.Its unfortunate you didn't sell within the three year time limit.

Subtract what you will actually pay for purchasing, holding and selling costs3.

If you subtract 210K from your purchase price, then you paid 70K for the land.

It looks good to me, but nothing gets by the Deal Analysis Forum.Here are the details:Asking Price: $230,000 (I ran my numbers on $220,000)Units: (4) 2 bed / 1 bath, rent for $700 eachBuilt 1966Tenants pay utilitiesIncome: $700 x 4 = $2800 / month or $33,600 / year Expenses (per month): Insurance: $66Taxes: $346Vacancy: $280 (10%) Management: $280 (10%) Misc repairs/Long term capital expenses: $428^ I just took 50% gross rents and subtracted all other expensesNOI: $1400/month = $16,800/yearFinancing:$220,000, 20% down = $44,000Loan of $176,000 at 5% interest = $944 monthly payment Cash flow of $1400 – 944 = $456 or $114 / doorOR (if I Owner Occupy)FHA 3.5% down = $11,000Loan of $209,000 at 3.5% = $1,012 monthly payment NOI of $700 (since I will be occupying one unit) means cash flow of -$459 (assumed $147 of PMI added)This property is in an ideal location - great neighborhood, proximity to schools, park, and community rec center.

After calculating cash flow(including subtracting 10% maint., lawn/snow care, Water/Sewer, HVAC Maint., 10% mngt. fee, and 8% vacancy, Insurance, and taxes) for a Duplex in a B/C rental market, Im seeing a Cash flow of 7.70%(237.