Do the 50% off rent for all expenses, then subtract the P&I assuming 100% investor financing.

It's 70% of ARV and then you subtract repair costs.

If you subtract $161 million in deposits from $173 million in assets you get roughly $12 million.

Under older rules, the bank would take the rent, subtract 25% for expenses and compare that to the PITI payment.

All my calculations assume zero fixup costs, so you should subtract those off.

The reason that we don't subtract the downpayment from the purchase price is that there is a cost to the downpayment.

Subtract off the fixup, and that's what you can pay to get a $45K (if things go well) to $30K (more realistically) profit.

Jon Holdman's post on the 2% rule, responding to your Dec-07 post would suggest an after repair (ARV) price of $150k ($3k rents / .02), and subtracting for $25k in repairs, that puts the purchase price south of $125k.

So, an easy formula is to take the rent, divided by two, then subtract $100.

Jeff That's why I've always been a fan of not only "qualifying" the buyers but while I'm adding to the list I also subtract the tire kickers from the list as well.