Subtracting that area gives you your net lot area.

When calculating equity or ROE, I subtract the closing costs from my equity to get my "true equity" number. 

You may more simply say total sales prices less total project costs is your development profits, but I want you to see where we get the value for the sale or refinance first, then you can use that to subtract and calculate the profit.

If you can make sure that no personal $ goes in or out you get a great quick-n-dirty calculator for "what was the profit /loss this year", with less paperwork than adding up every receipt and subtracting every bill (keep that info in case it's needed, of course). 

(est 1,200x.75=900)  So your income would be 1,916.67+900=2,816.67   Multiply your gross income by .39 (2816.67x.39= 1,098.50)1.098.50 would be your likely max payment (this is not exact but it's closeNow subtract your montly taxes and insurance, I would use $125 (insurance) and $250 (taxes)1,098.50-375 (125+250)= 723.50 This is your max principle & interest payment including mortgage insuranceThe rule of thumb is that for every $1,000 you finance your payment is $5/month.  

Subtract #2 from #1. 

Are there any expenses subtracted from the total?

For a residential, that gets depreciated over 27.5 years as per IRS, so if you divide by 27.5 you'll get your annual depreciation =  $5,454, let's round it up to 5,5K[Again, this is simplified as things get more complicated in the first year when depreciation is prorated and get even more complex if you accelerate depreciation with a cost segregation].So, now if you have positive cash flow of, let's say 10K, you''ll have to subtract the depreciation and end up with a taxable rental income of 4,5K. 

Even if you take the worst ARV comp and then subtract repair costs from $220, you're left with $180k.

I’ve been searching and calculating numbers on several condos and being realistic by looking for an average $100+ cash flow after subtracting the expensive, such as taxes, insurance, Maintainance (%10).