"Cash flow" is generally what's left after all expenses, capital, and the debt service is subtracted from the actual collected rents."

If they are selling this as a investment, and it seems that is the way they are marketing it, value it as such.Take the income, subtract vacancy (say 10%), subtract the expenses and you have net operating income.

So you would figure out the market rent and then 50% would be the estimated before debt service cash flow, then you would subtract the monthly payment to get the cash flow.

. * Know what you can rent it for* Allow 5% -15% for vacancy in your area* Subtract for * Taxes, insurance, etc

If the land is leased or if the business comes with the land and the highest and best use of the land is this business, a simple income based analysis using the NOI of the lease or business should give you the value.If the business has no value, then all you care about is the value of the land, and you'll need to find comps for other, similar pieces of land in the area.Once you have the value of the land (what you could sell it for), subtract your desired profit and that's how much you could pay for it.

Most typically subtract 3%, of the ARV.Realtor Fees: What is the commission you are willing to pay your listing agent (unless you are the listing agent) and the buyer's agent.

The 50% rule should be used to evaluate a deal, so if the rents are $1,200 total, the 50% rule says that expenses not counting your house payment will be 50% so $600, then you take $600 and subtract your mortgage payment, and that's your projected cashflow, in this case, probably negative.

$400k x 70%, subtract another $80k because rehab will be double expectations, = $200k.Good luck getting the Bank to agree to sell to you for $200k!

You can then do a guesstimate of what they were probably paying per month/annually. multiple it by how many years and subtract that from the 150.

So what you're saying is I have to subtract out the interest included in the monthly payments?