Find the ARV, subtract the investor discount, subtract estimated rehab costs, and subtract your fee.

When I analyzed the property, I took all expenses and subtracted that from the projected rent.

PM just subtract expenses out of the rent they collect, so if they are going to take money, they can take it either way.

Start with the potential gross income then subtract the operating costs to determine NOI, divide that by the CAP rate in your area to give you the value, then subtract development costs, building costs, commissions and interest expense.

Subtract the profit you want to make, subtract what it will cost you to sell it (realtor fees etc), subtract the rehab costs, subtract the carry costs like insurance and interest and utilities and that's what you can pay.

If work is late, you can subtract from that last payment. 

Once you know what you can sell the property for, you can work backwards to subtract repair costs, closing costs, holding costs, and your desired profit to come up with your offer price.Buying and Acquisition Methods for Flipping HousesLast of all is the “buying” process.

Also when you refinance later do you subtract the portion you have already paid, during the rehab, to the lender from the total owed amount (loan + interest)? 

I Subtract your my profit of $5,000 That gives me my maximum allowable offer.

You will take your 4k/mo, subtract interest, taxes and insurance.