. @10%:           -$135Capex @10%:          -$135Prop Mgt@10%:      -$135Insurance:                -$37Taxes:                      -$190--------------------------------------------------------Total for P&I:            $ 410Use website http://1728.org/calcloan.htm and solve for AmountInputs:Years: 30Rate: 4.25%Payment: $410----------------------------------------Offer Amount: $83,343.52 (subtract any rehab/closing costs from this number if necessary)The one item this model doesn't take into account is the neighborhood.

When looking at income, are improvements subtracted from your income like maintenance?

So that first paragraph doesn't always hold.For calculating capital gains, certain closing costs at purchase are subtracted from the gain, so that can be a wash.

If your intent is to flip it, you should also subtract holding costs.  

To determine the MAO (Maximum Allowable Offer ) you start with that 70% loan amount ($70K) then subtract the Estimated Rehab costs, Holding and Closing costs.  

Subtract that cost plus a new roof, HVAC, and a myriad of other costs from the property over the next 20 years and you will be better able to estimate the actual cash flow .

If you use Airdna you have to calculate manually and subtract in general though, you can think of your cleaning fees, debt service, capex contingencies, and other operating expenses (supplies, utilities, etc) as a sort of “hurdle” that you need to overcome with revenue before you start making a profit.

Subtracting interest and depreciation leaves a passive loss of $1,384.04.

For those other costs, you could subtract $200/mo for repairs & capex (~1% of home value per year), $100 for insurance (not Arizonan, so I'm not sure if this is right, it is for my market), and another $100 for vacancy, which works out to be ~6% which in a high demand area should be reasonable.It's rather tight, but at the refi I suggested it would also be a "free house" for you.

Add up the amounts for all of the utilities/services the tenant will be responsible for paying, then subtract that amount from the rent on the first page.