It's what you paid, minus the value of the land, plus what you spent on long term repairs (roof, furnace, etc.

@Jay Fayz for SFR (1-4 family) Classifications are mostly opinion-based.Not aware of anyone tracking eviction rates, except Evictions Lab nonprofit that doesn't like landlords.Here's some info that might helpt:---------------------------------------------------------------------------------------------------Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

Analyze potential deals by estimating the After Repair Value (ARV), repair costs, and total expenses. 

As a PM, I'm authorized to make emergency repairs without owner permission.

Until you have to do a major repair like a roof.  

Typically corporate/bank owned homes are managed by an asset management company.

Adding a 1/2 bath, new roof, central air or other typical improvements will increase the value of the property. 

Current owner is willing to break even on the purchase price however, in my opinion I think he should consider 5 or 10k less then the purchase price considering the amount of repairs he neglected over the length of ownership.

Quote from @Stetson Oates: As a suggestion, when you refer to net cashflow, I would include maintenance, vacancy, and repairs. 

All this to say your repair partner is going to be crucial to your success.