You add up all the assets and liabilities then subtract the liabilities from the asset. 

Then we subtract out the rehab of $100,000 = $425,000.  

Flips are about calculating numbers, all in costs subtracted from sale price equals margins.

subtract closing costs... and you'll see there wasn't a lot of profit. 

You're absolutely correct.A small detail to keep in mind to anyone running these quick calculations by hand on their own:  it's important that $50/month is added to the total monthly expenses (as Jay showed above), as opposed to subtracting the $50/month from the total income which we sometimes see.  

Be cynical and conservative, subtract out the rent from any ghost office.

. $2,500 monthly rent (not subtracting monthly expenses and mortgage payments yet) is $30,000 annually which is 5.3% return.

We did this to help shake out any kind of problems that might come up and get their opinions on what we needed to add, subtract or change.Having said that, we only had a handful of takers.

Find out your (ARV) After repair value from recently renovated 6 bed 2 baths in your area, and then subtract that by the cost of repair and acquistion price.

The step up basis is they subtract the sale price of $3 million and $1.5 million so proceeds are $1.5 million and they pay capital gains tax on that amount.