Figure out what market rents are, and that is what you will get.From that, you'll need to subtract a vacancy allowance.

Most sellers don't even know what expenses to subtract from the rent in order to calculate a NOI.

And he bought the house in 2008 for $97kSome of the investors in my area say they usually take 40% off the market value and minus repair costs and minus their assignment fee...But from the looks of it there might not be alot of repair for the end buyer to do and if i subtract 40% from the market value I come up with $105k and I think that way too low to offer him but What do you all think I should offer him?????

Subtract HM fees from purchase price?

Then, you take the sales price from the second half of the double close, subtract any costs, then subtract your basis.

Sounds like you need a better agent to represent you.an inspector isn't going to, or shouldn't tell you what things are going to cost, they'll simply tell you the 'condition' of the property and what is or is not in working order.if your concerned with the dollar amount it's going to cost to fix it, get a contractors estimate and then subtract that amount plus a few bucks from your original offer..Also something was told me a long time ago and I feel like it still applies today......if you believe something, your probably right.if you believe your paying to much, your probably right

Do I need to subtract closing costs from my max offer?

My recipe for successful retail flips: 1- research area2- price BEFORE purchase...comps (DOM,PRICE)-10,000 (for me) = $sell quicker3- EXAMPLE Scenario: 100,000 ARVPurchase: 25kRehab: 15k (basic)Total: $40kSell quick $90k (depending on comps/ consider DOM & actual sale prices BEFORE you buy)Profit $50k - realtor fees, transfer taxes, etc...around $42k after everyone else gets their cut.WITH the bank, subtract another 5k + further reducing profits.

This 3 year, 50% return of cash is figured by subtracting out insurance, taxes, water, sewer and interest from the rent.

Here's the really simple analysis:Rent: $7500 (10 2br units)Expenses: $3750 (50% rule)NOI: $3750Desired cash flow: $1000 ($100 per unit per month)Max payment: $2750Max price: $413,346 (7%, 30 year)Subtract off the work that's needed, and the cost to convert the 1BR and studio units to 2BR.