You would take 1/3 of $2.0 million - about $666K - and then subtract 1/3 of the routine selling expenses such as broker's commission, title, escrow, documentary transfer taxes, recording fees, etc., to arrive at your Net Sale Price that would be around $625K. 

So what I’m saying is if you get $1200/month for rent and subtract 10% for vacancy to get $1080, you should subtract $108 from that (not $120) to account for a 10% property management fee.Additionally, wouldn’t you want to calculate utility costs during the vacancy period?

Then subtract repair cost, then profit.

The partnership will generate revenue and once you subtracted the expense and taxes, this will be the profits that the partnership will earn which is put back in the company as retain earnings on the balance sheet.

It's been my experience that for the purpose of calculating DTI the bank is going to take 70-75% of your gross rent and subtract PITI from that when calculating your net rental income.

For cap rate take the annual rent and subtract the annual expenses (repairs, taxes, management fees, insurance, vacancy, etc.) then divide that number by the property cost and multiply by 100.Hope this helps!

I don't know your property expenses but you would take your gross of $5600 subtract your expenses to get to your NOI so let's say that's 50% in this example. you would have $2800/ mo NOI. 

Here's how I see it:Your buyer's agent commission will be 3%, so that'd take your price from $200k to $194,000.Subtract your desired profit of $25k, and your expenses of $25k.I've never been under budget :) so add yourself a contingency of $5k.

Or it will come out as negative income which would subtract from your income, but have still offset all the mortgages.

This shows why in value add scenarios, finding ways to increase the NOI is so valuable.Loss to lease is subtracted from the gross rent numbers before subtracting operating expenses.