You ONLY subtract OPERATING EXPENSES to get NOI. 

It's the 70% rule, while also subtracting our the fee you want/can get.I go the other way...  

You ONLY subtract OPERATING EXPENSES to get NOI.

You can also run it as a buy and hold by finding average rents on rentometer and craigslist, and subtracting expenses.

Ann Horlacher $1000 a month shouldn't be too hard to hit.A good rule of thumb is to take your rent, multiply by .60 for expenses, then subtract any debt servicing (if any) from that.So if you're paying all cash for that house and get $700 a month in rent, subtract 40% (X .60) and you get $420 a month positive cash flow.If you put 25% down ($12.5k) and put it on a 30 year fixed, your monthly P&I payment comes out to about $200.So if you go all cash you can hit your cash flow target of $1000/mo with just three houses.If you leverage you can do it with 5!

You're subtracting way too much.

Well, being balanced makes sense.Here is s good rule:Take your age and use it as a percentage of safe, and subtract percentage from 100% to determine how much your portfolio can be risky.So, take a 40 yr old investor, 40% should be paid off, and 60% of his rentals could be leveraged.This is a rule of thumb, but a good one to consider in your real estate investing journey.

Well then get a bid, and subtract that amount +50% from your max bid price.  

Maybe the seller does, but doesn't care.My thought is to make an offer for both land + home at X price, but if the title or SOL cannot be transferred to my name at closing then 10K should be subtracted from the purchase price by Title company and Buyer will have to work out the ownership issues of the personal property.  

One thing to consider would be to: take your ARV, subtract your construction budget and holding costs, and price in a risk discount to cover yourself.