You should have a clear means to add or subtract people.

This is the other exit for your money.4 - Take the Cost to Enter and subtract it from the Exit Comp of choice. 

Would I also want to subtract HML and closing costs?

They look at how much your property will appraise for, subtract 20% because they want your to still have equity, then subtract your mortgage balance.

I thought with ordinary businesses you can subtract expenses from revenue and pay tax on the end result allowing you to keep reinvesting into the business? 

@Stef Martin if your intent is to scrape and rebuild, then you need to use comps that are new construction in the area to back into a value on the land by subtracting all of the costs to do the deal including your profit.

We first subtract 70% from the price of what the price of the home would be if it were completely renovated, then we subtract the cost of any repairs.

   $1.5MM25% Down would be $375KIt was suggested to me to speak with the owners (who I know - they are personal friends) about Owner Carry for $250K.Does this mean A) The $250K is subtracted from the original purchase price and therefore I would have to come up with 25% of $1.25MM  or..B) Out of the $375K down the owner would carry $250K and I would have to put $175K down on the deal ?

After you subtract rehab costs, carrying costs, closing costs etc - the average Net for a Fix & Flip after 6 months is $15,000.Are you willing to risk your home to try to beat those odds?

When trying to figure out the maximum square footage allowed, do I multiply the FAR by the lot size after having subtracted the required yard setbacks?