The correct way to determine cash flow is just to subtract all expenses, operating & capEx from NOI.  

If you are going to flip, it depends on your market...and available financing.If you are going to buy and hold, then you have to figure what the rents are, subtract the taxes, insure., etc...  

I will take the ARV and subtract a % from that number and then subtract my rehab costs to arrive at my maximum purchase price.  

., and will subtract those expenses from the income and give you you're bottom line.    

Below is the exact definition of APR.......APR is the effective rate on a loan, after subtracting required loan fees from the face amount of the loan.

These initial renovations/ make-ready costs should not really considered part of your cashflow projections even though that initial investment will certainly subtract from your bottom line/ profits.

@Hattie Dizmond  i found 1 of them on the MLS and the other 3 i just realizered wernt mls as i though but a foreclosure section of the website :/ but i was going by thinking that if i find compe in the area for rent and then use the 50% rule to see whats left for the mortgage, then subtract my mortgage and see the left over money.

My neighbors have them on their new homes (built after 06) and they all complain of leaks.When calculating Cash on Cash ROI, the example given in the guide was very simple, 20k down is the investment, take your annual income, subtract PITI and expenses, divide by the 20k and there's your ROI.But, should I be taking the principal from the mortgage payment and adding that to the investment, since it is going into the property and is technically my investment money still? 

Expenses are repairs (not improvements), tax, insurance, interest, etc. you cannot just subtract your mortgage as principle is an income.So quick and dirtyRent- repairs (not improvements) - improvement on depreciation schedule- insurance- tax- interest-depreciation (house only/27.5) it is common if your rent does not have a much greater margin.

Any lender that would finance the property is going to subtract a vacancy rate when appraising the property.