.$143,000 ARV * .70 = $100,100 and then subtract repairs of $25,000 so $75,100 is the deal number.

Taking 50% for expenses and subtracting the $1275 P&I payment says you're in the hole $400 a month.

Subtract about 20%-25% of that price and you have a ball park.

This can all help the cash flow portion, so if you cut out the cost for insurance, cut out any yard maintance, subtract a little for the difference in taxes, sometimes this can help offset the cost of the HOA.

I would use at least a 20% discount rate because I will not do business at anything less than that return.Now, after you figure out your present value of the stabilized property, you should subtract from it the losses that you anticipate from operating it until it is stabilized.

Bedrooms add or subtract about $100 a month in my market.

So take what you have in the home, subtract the down payment and that is your basis.

You agreed to pay 100,000 so subtract the present value from that amount and you get 62,942.26.

The rule of thumb there is to figure out the fixed up price, multiple that by 70%, then subtract the cost of repairs.

So your "equity" to the lender will be governed by what you purchase it for.Equity is in the eye of the beholder and banks don't value security interest that is obtained by subtracting the purchase price from the appraised value.