From what we are seeing a 60 to 70k 3 bed probably needs work or might be in a less desirable location. 3 to 4  years ago that price point was easy to find but current prices ( after repair) would exceed that amount.

That piece is often underestimated by many.For the other key numbers:The structure is  Maximum Allowable Offer (MAO) = ARV - Holding Costs - Rehab - Closing Costs - ProfitARV (after repair value based on recent sales within a 1 mile radius.

They can save you money on an occasional repair, at the expense of your sanity.  

But if I include equity gain that bumps up to around 16% on both(have not deducted for vacancy/repairs).

has anybody had experience using abstract of judgement in north carolina. tenants left after 1 year lease, she always paid on time but has left home with close to $5000 in repairs.

That way you won't have to concern yourself with repairs or evictions and things like that so you can focus on your classes.

Calculate the After Repair Value (ARV), or the expected market value following repairs, and estimate the expenditures associated with those improvements.

Someone will need to be handling inquiries, monitoring rates, guest issues that arise, marketing, repairs, maintenance, and housekeeping. 

Quote from @Daniel Bergless: Hey Hadar,Im a local agent here in Pittsburgh, and the firm that I work with focuses on distressed properties for investors, and from the numbers we have seen most of the opportunities we sell are typically 75% of the local ARV minus any repairs.

You now know your cash flow and what you can take out.Investors' problems sometimes include not budgeting correctly for repairs and maintenance and not factoring in a set amount that they will be contributing to their reserve account for CapEx (if you have CapEx repairs coming up sooner than later, put away more money into reserves now).To summarize, factor in all expenses and your monthly deposit into your reserve account before calculating your monthly cash flow.