subtract taxes, insurance, PMI, annual estimated repair and maintenance and if it effectively lowers your monthly out of pocket then you're good. 

The deposits doesn’t “get subtracted from the sales price”, it gets deducted from the required “cash to close”, so it Is a wash. 

It is added to the total price, and then the purchase loan amount is subtracted, giving you your total cash due at closing.

Meaning the cash flow dropped to $300k.3b - ...and, also assuming an average of 3 months vacancy over a 5 year period per property, that's around $400k (remember, you are losing the full rent...not just the CF), which takes your CF to a loss of around $100k.3c - Subtract that from the appreciation (#1) and you get a total return over a 5 year period of around $125-150k.3d - Since you are self managing, that means you paid yourself (using the higher $150k) $2500 a month to manage 25 properties, for 5 years...in equity (remember, you end up netting a negative CF).

Subtract $90k of debt service (of which much of it is principle reduction, but again, whatever). 

But they then subtract the amount you owe on the home to get a final dollar amount. 

If your property has 120 K in equity the return on that money should therefor be 10% of 120 K or 1000/month.When you subtract the necessary return needed on your dead equity from your rental income you are left with only $100/month to cover all the expenses on that property...repairs, vacancies, taxes, legal, cap expense's, regular maintenance etc.

The average flip makes $67,000 (gross, on paper) but when you subtract rehab costs, commissions, carrying costs, and on and on the average flip nets about $15,000.

Subtract the stairwell and entry halls, bathrooms and closest etc.

Hey @Colin Leach, there is a basic forumula that every new and experienced investor uses and that is ARV * 70%, take that number and subtract expenses.