when i have watched videos about the 50% rule. why does he always include taxes into the expenses part,  then he subtracts the mortgage from the other half which includes the taxes again.

The "1.5 rule" mentioned in a post above turns out to be very similar to the "65% of ARV" or "70% of ARV" rules - that "1.5 rule" yields a "67% of ARV".But it does not seem to subtract out any needed repairs, which the MAO formulas usually take into account.As for sheriff sale purchases, property condition is a crap shoot - and you should usually expect the property to be crappy and make you want to shoot yourself if you don't account for condition properly :DIf you can evaluate condition (both interior and exterior) ahead of time, you can get a ballpark figure for repairs needed, and subtract that from the 65 to 70 percent rules.

I generally do an equity presentation and subtract out the normal selling costs, subtract the debt he tells you he owes, and arrive at an "equity" number which is what he will take home at closing.From that point you can make several offers to buy the equity at a discount while taking the property subject-to.

IOW, if you subtract your debt service (P&I based on 100% financing) from half your rent AND wind up with $100 or more, then the rental is deemed "good to go".

Yes, you can depreciate existing personal property in the house using 5 years accelerated MACRS depreciation, including:AppliancesCarpetingOther "removable" flooring (not adhered or glued down)Drapes, blinds, window treatmentsAwnings attached to houseFancy lighting fixturesYou will need some support for your values, either an appraisal from a used appliance dealer, printout of Craigs List ads, etc.You can also depreciate land improvements over 15 years: landscaping next to house, fencing, sidewalk, driveway.You need to subtract all of this from the total costs, and depreciate the residual over the standard 27.5 years.

you can go outside your immedate area if you have to find comps..i had an appraiser do that a few times...you can also call a multifamily broker in your area, and ask what cap rate multifamiles in that asset class (A,B,C,D) are listed and selling at..then figure your value from that cap rate you need to list and sell at...and subtract the renovation costs off the value you get...not sure if you're trying to buy or sell these..if you'relookign to buy, check out the 50% rule to finda quick value..good luck

Would it not make more sense for me to estimate a number the owner would counter with, then subtract what an inspection would reveal with respect to things that need to be repaired, and providing that information along with my initial offer in order to justify my calculation, rather than submitting something to my landlord that looks like someone just made a random offer?

If so, do you always have to count the days from January and subtract from 360, or do you just start counting the days from the COE date?

Take 75% of your annual rental income and subtract 100% of your annual rental expenses.

Then make an offer on the property based on the comps you have looked at and subtract from the offer the cost of the repairs plus 10-20% extra.If you get the property, you will be able to finance it with your current credit score using the FHA Owner Occupied Loan programs which your trusted realtor can advise you on.If the seller doesn't take your offer, move on and find another.