Multiply the ARV x .65 = 65% of ARV Then subtract cost of repairs from the 65% = max purchase price Thanks

Let's say the building is listed at $160k and I would offer $140k because of the roof, can I offer $160k with a seller credit of $20k and get the $20k subtracted from the downpayment owed?

That's my 1st pass filter, which your property doesn't pass.For my 2nd pass filter, I take the property value, subtract out capital gains taxes and transaction fees to sell it.

Once you have these numbers, you can subtract the expenses from the income to come up with your NOI.

If all four units are rented I should have an NOI of about $400/month, although I would plan on being an owner occupant so subtract $525 from monthly income while I live there.

In Brandon's recent webinar, "How To Make One Million Through Real Estate Investing", Brandon says to take the after repair value and subtract 20% for the price you pay.

@David Andreiko Subtract 10 % maintenance and 5% cap ex to reduce your NOI.

I kept the Electric in my name, then when the Bill comes in, I simply subtract off the Sub-metered usage from the bill and then can bill each tenant for their usage.

I actually like  that idea because it would keep me from having to invest all of my profits (subtracting whatever I need to pay for fees with the HM lender) into the multi-family and can even continue with flipping.Really could be a good strategy but I also don't know enough information about refinancing with a VA loan, so something I'll have to do some due diligence on.

So you would figure out ARV based on your area's cap rate, then subtract repair estimates, to get the maximum your investor would pay.