Subtract the purchase price from the max amount and that would be the amount for renovation a 203k will go up to.http://www.fha-loan.org/fha-loan-limits/fha-loan-limits-in-california/

On the new one the bank will take 75% of rent and then subtract the PITI payment.

Subtract my $16000 in repairs and I have $84,000 in real appreciation.

Determine the ARV, multiply by 70%, the subtract out all of the rehab costs.

.$40,000 is our BASIS (what we have in the deal).This is how WE back into a sales price based on the rents:Take the $950 rent and subtract out the the tax and insuranceexpense; what you'd have to pay in taxes and insurance if you owneda house in the area.Let's say in this case the taxes were $100/mo and the insurancewould run about $50/mo.+$950 Rent-$ 100 Taxes-$ 50 Insurance=$ 800WE see that this tenant can afford to pay $800 for principle +Interest and by the time they pay another $150 for taxes andInsurance their payment to own is equal to what they were payingfor rent.

I get this once a month , a customer will get an estimate from me , then will say he has the materials , So I subtract materials from my bid , problem is I subtract MY cost of materials which is $ 700 and the customer says the materials are $ 1600. .

If not reached then you could subtract some dollar amount for every day late.

On my last purchase I found the market value of my house using comps, subtracted about 25%, subtracted my estimated repair cost, subtracted my estimated holding costs to do repairs, and came up with a max offer.

Justin - I 100% understand your formula but it is still a bit foggy since there is no examples of purchase price,20% down payment, repair cost, closing cost etc...My biggest problem still is understand were the points come in do these point ge charged up front as a good favor fee or is it subtracted from the loan amount.for example lets say $100,000 = A.R.V.

Here's what you should do: Get the Income and Expenses, subtract them for the Net Operating Income (NOI).