Subtract out the P&I part of your payment.

Managing your team and adding/subtracting to/from it.5.

The question is, does it add or subtract value?

Meaning, you would determine that after repair value (based on the comparables to the house you are looking at) and multiply that value by 65% or 70% (based on how much of a margin you want) and then subtract your rehab costs.

For me, the net profit does indeed play the most important role but there are many who have the hidden entities that add or subtract so much more.

I always hear, of course, that you take 70% of the ARV and then subtract repair costs and then your profit amount, but how do I come up with that profit amount?

Wholesaling to a flipper certainly has to be priced allowing a profit for the flipper, not necessarily at 70%, you need to put a pencil to it beginning at the ARV, then back off to a probable sale price, then subtract his profits, costs of repairs, holding costs, transaction costs to get to you number of what you sell for, take out your fee and follow the same costing approach to get to an offer.

I subtracted 70% of ARV, which equaled $115,500.

I'd take that price and subtract the repairs needed.

If I were projecting profit on this RE in my market I would subtract $900/month for my cap expense estimate which would still leave you a cash flow of $2798 not including principle pay down (substantial on this size loan plus the down (second) also has interest (and principle pay down) on it).This one issue aside, it looks like a fun and profitable project.Good luck