I would account for 70-80% of purchase price multiplied by the tax rate for the following year just to be safe. 

  $40,000 in equity (25%) will stay in the property.You are using the wrong numbers to multiply (Purchase price and Rehab cost do not determine the Refinance loan amount). 

In the book, I can't remember who said this, but he said you should multiply your goal by 10 and that is your new goal. 

@Joe Johnson Maybe before anything you should define what you consider ROI and how you calculate it - this is how I do it:Cash Flow = Annual Income (or Monthly Rent x 12) – Vacancy (or Monthly Rent x 12 x Annual Vacancy Percentage) – Operating Expenses – Mortgage Payments (or Property Price minus Down Payment, all multiplied with Loan Factor times 12)Cash on Cash Return on Investment = Cash Flow / (Down Payment + Closing Costs)1.

I know BP has their own calculator and methods but what we do is just build in a 15% of gross rent multiplier that encompasses capEx, vacancy, deferred maintenance, etc.

If you plan to rent the approach to value that you need is the income approach with rent multiplied by a gross rent multiplier.

Nail down the ARV, multiply by .7 to .75, subtract your estimate for rehab (since your new, add a 25% - 50% buffer), then subtract your fee.

However, when you add PM and CapEx savings to the Operating expenses it drops your NOI tremendously and then when you multiply it by the Cap Rate you get a much lower valuation of the property than the listing price. 

Divide that by 12 months and multiply that by the 4 months I held the property and you get $267.

I’m starting to bang my head against the wall trying to make anything pencil not knowing exactly what the property taxes will be but figuring it is the combined rate on the tax assessor’s site multiplied by the acquisition price.