One that takes the potential gross income, subtracts out all the potential  operating expenses (utilities, mgt, maintence, repairs, vacancy factor, leasing, pest control, taxes, landscaping, cleaning, just to name a few) .

After that, you subtract your monthly mortgage and you have a guess on what your income will be for the month.After that, you can do a deeper dive into a property and get more details than the 50% rule will give - actual property taxes, actual utility bills, maintenance fees, etc.BP has some calculators under the Tools section, which can give you a good idea.

If the basic qualifying formula is that income must be three times payments(the actual formula is close to this), that means you need to earn much more income to qualify for the investment mortgage. " He goes on to give this example: Home mortgage 1,000 month (which is what I pay) to qual for it at 3x you need 3,000 month income (which I do make) Rental property 1,000 month Again you need 3,000 income, but you no longer have it because 1,000 got subtracted to pay for your mortgage.

You subtract all your deductible costs/expenses3.

Using the 50% rule, and after subtracting debt service, if you are not left with at least $100 cash flow, then they don't meet that rule either.

You should be subtracting out mortgage payments before you determine COC...

., and yes it favors us. .Being a contractor is like being a landlord , the longer you wait the harder it is to collect .As a contractor , I dont care about the customers draws , if he is or isnt making money on the project .Over budget , blame the guy who did the budget , not the contractor doing the work.Customer supplied materials ...........We do not give any warrantyAll we do on price then is subtract OUR cost on materials for the price , not what the customer paid for materials .

Multiply that number by the square footage of the property you are comping.If I'm doing a rehab on the property requiring more than $25K, I usually subtract $10K from the ARV only because our market in my area is still declining slightly, and that will usually take 3 months.

Why would anyone advise you to refinance and then let the person live there paying rent for 4months, you would end up holding this rehab for close to 7months before you'd be out of it.I think you may need to do your rehab calculations because from where I'm standing your profits are getting slimmer by the minute, 10% from 115,000 is 11,500(realtor fees and buyer closing costs),78k to hardmoney, 5k to banker thats only 20k left over and you havent subtracted rehab costs.What if the appraisal comes in low?

50% of gross = $25,800 subtracting from your gross of 29410 there was a difference of $3610 which I then subtracted from your $5489 pre-tax cash flow leaving $1879.