At its worst, this is a 3.8% tax on you net rental income after subtracting all your expenses, interest payments and depreciation.

You take the value of one more bath and add it to the house.Visa-versa is your house has 2 bath and the comp has 3, you'll subtract the value of one bath from the comp to get an adjusted price.

I'm always hearing subtract this, subtract that, but they all sound too broad.Some of the stuff that I know to subtract from the after repair value are:-My assignment fee-Profit for the end buyer-Closing costs-Repair costs-Inspection costs (termites, etc)-Appraisal cost-Broker/agents fee (if they plan to sell with an agent)-Hidden fees such as liens/back payments (if they apply)Are there more than just these?

Just my thoughts put on paper :) Take what you can from it, add more, subtract.

Subtract another 10 a week for commuting and lunch.

Subtract the payment and you're left with $292 a month, $3,500 a year, in cash flow.

There are a bunch of websites that will calculate your monthly principle and interest payments from that, and you can do it in Excel/Open Office too.Once you've subtracted your P&I payment from your NOI, you've got your estimate of monthly cash flow.4) Figure out how much extra you would have to spend after purchase to get the property into rentable condition, so it can compete with the other properties you looked at in 1).

What we always do is subtract the material cost from the bill, I pay that over the phone and have the supplier fax me a lien waiver, then I pay the roofer the difference and he signs a lien waiver.

I subtracted $5 instead of $5,000.

Subtract that from the home value and you have the equity.The problem is you don't know if the homeowner has accelerated payments or defaulted and owes more or less than expected.