There is more to analyzing deals than subtracting expenses from revenue.We analyze deals by location first, asset condition second, and returns last. 

Once I have determined the value of the subject property in rentable/livable condition, I figure out the repair/rehab costs of the subject property and subtract it from the ARV.

Would it be .75x $1250= $938 is subtracted from my total monthly DTI?

@Amy Sommers - A quick way is to subtract purchase price from appraisal.  

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) .

Like the above poster said, we typically offer 70% of the market value and and then subtract any repairs that might be visible from pictures and description.

Don't forget you will have selling cost to subtract.

I misunderstood where you said "you'll deduct the Mexican tax withheld from the US tax" but now I see you meant subtract, not an actual tax deduction. 

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.

Subtract $9,500 ($100/unit, 95 from your other post.)