Mock example deal: Asking price:20k, ARV 100K, Rehab 20k (my question is here too), rent income 780.00, desired cashflow 150.00(looking at the asking price as though it were a 5 unit multifamily-so counting rent for 1 door)Rent 780 minus: cashflow 150.00, proptery mgmt @ 10% 78.00, maintenance @ 5% 39.00, vacancy factor @8% 62.4, collections mrkt@10% 78.00 total max pymt 372.6 minus:Im guessing home insurance @ 54.17 / month and taxes @ 67.5/month (of course guesstimate for learning sake)total to max pymt of 250.93 i then take this number and figure the loan amt into my loan calc at rate of 4% (bc i have seen some lenders advertise 3,4,5% loans) came up with loan amt of 52,560.11 then subtract rehab of 2k and closing of 2k and have max offer of 48,560.11Now i understand the math better since i researched a walkthru.

Any costs to purchase would need to be subtracted from the $67,976.47 so that you do not spend any more than $67,976.47.

But IMO, I would want to subtract the cost(plus labor) of a roof, a/c and pool resurfacing in my final offer to the seller...unless this was already a part of your initial agreement offer.

Then subtract your payment of $337 and you're only left with $163 cash flow.

Subtract it from $79k and you get the answer above.

Make sure to subtract any and all rehab issues...especially the roof.

Subtract the repair estimate along with Aprils unpaid rent.3.

Subtract 6% for vacancy (or whatever number is common for your area)= 14,325Insurance Property taxesLawn/snow Annual repairsCall the city to make sure there are no upcoming sidewalk/sewer/road upgrades that will come from your pocket.

If you want to get technical...I don't see any subtraction for vacancies.  

Maybe you could subtract only half the percentage amount they would've originally paid to a realtor from your purchase price.