Subtract the amount of your profit (10-15% of the current value).

That is the amount AFTER their downpayment is subtracted.

I would make a quick guess about the ARV, multiply it by 65%, and subtract $30k for rehab, which is a number I pulled out of mid-air.I need to make a point to visit properties regardless of whether or not they are deals, just in order to get some practice.

Banks generally take 75% of gross scheduled rents (that is, ignoring any vacancy or discounts) then subtract PITI to estimate the income.

There are also frequently negative returns with large enough samples so people like to add one to each of the observations and subtract one from the output of the geometric mean using these observations to arrive at a return metric.So in other words you would use:=GEOMEAN(Range_of_Percentages + 1) - 1This mean is always equal to or smaller than the arithmetic mean that most people use to cite returns over a period of years.

Take that number, subtract $2500, and that's your potential assignment fee.For example, if an investor would happily pay $10,000 for the deal, you can take an assignment fee of $7500 (the sale price minus the purchase price).The key, of course, is knowing how much it's worth to other investors; unfortunately, we won't be able to help you answer that question with the information you've given.

@Jon Klaus If you use the 30 day bankers month, do you then subtract the days not used or add up the days used in the month for example,Aug = 31 days, Rent = $1500Per 30 day bankers month, daily rate = $50If my tenant moves in on the 5th of the month do I Subtract $200 ( $50 * 4 days) from the rent and come up with $1300ORDo I add up the days rented in Aug, which is 27 (27 * $50) and charge them $1350

Which is:$1200mo NOI - $900mo P/I+PMI = $300mo reservesIf you are living in one of the units, subtract the remaining 50% on that unit from the reserves which is $225.

If the formula IS correct, I'm wondering if the bank mistakenly added the 12-unit's monthly obligation into the DTI ratio when if fact it had already been subtracted when calculating income?

Caveat is you have to look back 12 months at your loan balance, and subtract that from the $50k max.