Compare Savings: Subtract the prepayment penalty from the potential savings generated by refinancing (e.g., lower monthly payments, reduced interest rates).

Megan Luckily the math part isnt too high level just addition, subtraction, some mulitplication and division but we as a community can all help you through it.Leave the complicated math for the wall street quantative analysts and derivative traders.

I don't get to keep that, so that is subtracted from my payout here.

Subtract income tax and tax prep from your cash flow. :-)) Run 2025 through quicken and at the end of the year you’ll have real numbers and you can come back to this post and see how close you were.

Then you need to be able to earn at least $1000 more in profit (after subtracting all the expenses) per month above that rent to make it worthwhile to yourself. 

I have been considering asking to buy the single family in cash to separate the deal but would like that amount to be subtracted from the purchase price while keeping the cash I would spend on the down payment the same to include the single family that way the seller gets the same amount of cash upfront.

I went back through all my numbers for 2024 and subtracted all the construction costs of improvements we have made and found quite a bit... so once I remove all that net profit looks like $110k. 

First, you would need to subtract allowances for repairs and vacancies (a necessary prediction).

. $550  / mth * 8 unit = $4,400 * 12 mths = $ 52,800 GRI  ****not $53,800****The formula for CAP = NOI/PriceNOI = [GRI - V&C loss + OI] - EXP  *****You did not subtract for expenses to arrive at NOI nor include a vacancy and collection factor****Assuming expenses are 50% and 100% occupancy (which 100% occ is not realistic all the time).

Imagine you bought a property for $2M.The land (excluding any structures) is valued at $400K.Since land is not depreciable in the eyes of the IRS, we subtract the land value from your purchase price to get your depreciable basis.Your depreciable basis is simply where a cost seg engineer starts from when allocating your eligible assets into either 5, 7, or 15 year property.In the scenario above, your starting basis would be $1.6M since your basis = your purchase price - the land value.Having an accurate land value is essential to getting your depreciation/bonus depreciation calculations right.This is the starting point for any cost seg study that you do.