You will subtract your $784 per month PI pymt leaving only $66 cash flow.You are amortizing the loan over 15 yrs which, IMO, is hard to do.

If that't the case, then that is what I would put.I would *not* subtract here for closing costs and commissions because (1) that was not part of the instructions and (2) the lender may very well do that for you behind the scenes, so you don't want to be double-whammied.I know when I was underwriting commercial loans, we would look at the "adjusted net worth" of the guarantor.

depends what you want each month in terms of cashflow...most here believe in the 50% rule and the 100/door profit per month...this will help you figure out your maximum monthly payment on a mortgage...then run that with a financial calculator to know your max offer...assume 100% financing so you're not paying for cashflow in the form of a downpayment...if you don't know what loan terms a bank would offer you, 20 year amortization and 7% interest rate would be a good starting point for calculations....so, if you have a property that you think will rent for 700/month, divide that by 2 for the 50% rule, and then subtract out your 100 dollar profit..the rest is your monthly payment....so....700/2 =350 350-100=250 using a financial calculator, for a 250/month payment at 7% interest, and 20 year term, your max offer would be 32,245....hope that helps

This will be you base rental rate then add or subtract based on how your unit compares to the comps.I would try to get a little more than the base rate or at least ask for that.

Most of my properties are flips that are sold within months, and even my rentals I only expect to hold for 3-5 years max.If I were ever to buy rentals that I expected to hold long-term (more than 5 years), I wouldn't subtract out selling costs -- I would just use market value.

had a meeting with my banker yesterday....just for comparison's sake, my banker takes gross rents and subtracts taxes and and insurance...he takes 60% of what's left and counts that as income...that is super conservative!!

In other words, you add up all costs, subtract the total from your income (the sale price) and that's what you owe taxes on.By contrast, with properties you hold, some things are expensed, some things are depreciated, some things are pro-rated, etc.

When they "submit" the form a calculator will take the low home value and multiply it by 60% and then subtract the high repair value to come up with the "offer".Of course there will be other questions such as contact info, mortgage balance, liens, house specifics, etc.

.$70,000 purchase price$17,500 (25% Down)$5,000 rehab expense$22,500 intial cash outlay$218 * 12 = $2,436 annual cashflow after subtracting HOA of $180$3,850 estimated equity gain via appreciation @ 3.5% (Speculative)$700 of debt payment via principal$6,986 Profit Year 131% Cash-on-cash return Year 1 (This is throwing out closing costs on your mortgage, but you get the idea here.

Is there something I should add or subtract?