So, using made up numbers:$100,000 value$80,000 loan - 80% LTV (Subtract existing payoffs and closing costs)Subtract two to four percent of loan amount - points= Net proceeds$80,000 loan at two points means only net $78,400 before closing costs and payoffs.

@Jonathan Perez After you subtract all expenses ($1220) from Rent ($1325) you have $105/month or $1,260 annually.

@CJ Joachim This is the formula I learned:-Calculate ARV-Subtract Gross Investor Profit (GIP): Net profit plus aprox 15% for closing and holding costs. 

I typically subtract 3%, of the ARV.Realtor Fees: What is the commission you are willing to pay your listing agent (unless you are the listing agent) and the buyer's agent.

What is the ratio of time to profit, as in, how long will the rehab take...and how much of a return do you want to make per month.Choose either, or both of the above "profit profiles", and subtract it from the ARV (you ALWAYS pay yourself first.Then, subtract your rehab cost, and any other misc. costs you will encounter along the way.That's your maximum Purchase Price...make an offer either at (no negotiation) or below (to negotiate).

Subtracting the Adjusted Cost Basis from the Amount Realized I have a gain of $30,000.  

I told them that if they pay for the credit check up front and if everything checks out, I will reimburse them (subtract it from their rent). 

If you are wholesaling, subtract a fee. 

So you can Refi the house for the 120k for 80% to get 96k then subtract the 50k for an end balance of 46k.

I'm glad to help you figure out if this is a good deal or not but we will need extra info on the deal.Then we can calculate the yearly cash-flow of the property; and then we can compare that to the invested capital so you know what COC return you will get.So, to calculate the yearly cash flow we need to know every monthly expense (including the loan, or loans, payment) and every monthly income and then subtract one from the other.