Should I factor this by subtracting the HOA fees from the rental income.

It sounds like you are not the buyer but a wholesaler on this and wanting to sell to an end buyer.In the case you are describing as a buyer I would subtract the worst case scenario for the tenant upstairs with damages and lost rent evicting them.If the seller will not do that you need to move on.

For example, if you are going to self-manage, subtract the ~10% manangement cost and go with the "40% rule".

So amount of total loans is CLTV times appraisal, or .9 x 650K = 585K; then subtract remaining loan balance from that and you have you HELOC limit of 172K.

I take the ARV and multiply it by .94(this covers closing costs, commissions, and a little bit extra) then subtract your rehab costs and holding costs, and profit, and you have a more competitive offer.

I take the ARV and multiply it by .94(this covers closing costs, commissions, and a little bit extra) then subtract your rehab costs and holding costs, and profit, and you have a more competitive offer.

$50K is as good a guess as any about a rehab cost, so subtract that.

Subtract the cost of demolition3.

I agree a roof will last for about 20 years. 20(average)-12(time already spent) leaves me about 8-10 years before I plan on spending the $5,000 for the roof.Property taxes, along with insurance, and mortgage were totaled into "monthly housing expense" and subtracted from the monthly operating income leaving me with monthly cash flow.

By clearing I just meant taxes, insurance, mortgage subtracted from gross rents if the property was full though admittedly that was a bad choice of words.