Joshua Curtis One, paying retail price is dumbTwo show The seller the costs to sell which is about 10% of value or 13,000 I don't buy anything unless it's $20,000 profit plus costs to sell subtracted from compsI might do a lease option assignment if the seller would pony up the repair costsI might do a subject to if the seller would pony up the repair costsLocation has a lot to do with whether or not I would do a lease option assignment or subject toIf you are licensed try to list at 97% of comps

Info below.Purchase: 119kRehab: approx 67kSell: 263kNet profit: $58k (really good one)How I got it: wholesalerMore details belowPics belowFinal ReconciliationTime from start to finish (in months)4.13Time from start to finish (in % of year)34.40%Cash from Borrower (Line 303 on HUD) 18303.84Add back earnest money deposit if I sent one100Total cash to purchase 18403.84Less whatever commission I received- with the admin fee of $395 taken off of the total commission amount0Cash to purcahse less commission (final total amount of cash invested to purchase)18403.84AddRehab Costs66678.83Utility Costs @ 80/mo330.4Mist Costs @ $1K1000Total Cash Costs Not Including Interest86413.07Interest- subtract my Eagle unused interest payments from the interest reserve; add the interest payments I made for hard money4480Total Cash Costs Including Interest (subtract for Eagle, add for hard money)90893.07Cash to seller (Line 603 on HUD)149757.36Any commissions I received when selling0Cash to seller plus any commissions I received (my net cash at sale)149757.36Net Profit$58,864Return on cash65%Annualized return on cash188%

Taxes and Property Insurance are both included in 50%... you should just be looking at P&I (principle and interest) to subtract from what is left over to calculate cash flow.You also need to include the rehab costs into your initial cash outlay unless you were able to finance those...

I forgot to subtract insurance and taxes from duplex, so lower that $17k down to about $14500

In other words, you subtract out all costs associated with the acquisition, rehab and sale of the property.

Don't expect the shorted lender to go along with the "take 30% off the top, then subtract rehab and assignment fee".  

While that sounds straightforward, it's a bit more art than science.If I'm going to resell the property I take the value after the property is fixed up and subtract 20-30% (lower price points at the higher discount, higher price points at the lower discount), then I subtract the cost of the rehab.  

Subtract a vacancy factor (5% or more if that's normal for your market) from your annual potential rental income.

Subtract your expenses from your income... set aside a reserve for periodic things like CAPEX... what's left is cashflow.Sorry, asking a vague question and all you're going to get is a vague and snarky answer.What specifically are you trying to understand?

From that number, subtract the back taxes, your fee and closing costs (assuming your buyer will not pay closing costs).