So if you subtract off all the utilities including cable (Say $400) we are looking at $1700 a month for a year lease and $1900 for short term lease.

You will also subtract part of the closing costs on both ends, cost of improvements over the life of the property, and costs of preparing the property for sale.

After simple addition, subtraction, long division, and multiplication I am no longer of any use.

He did mention subtracting the overall price of the house for money i pay towards rent and doing work on it as well.

A property that is 70-80% of Retail value and then subtract out the repairs.

If there are no 3 BR homes that can be used as comps, there are ways of adding (or subtracting) the premium involved with extra bedrooms.

I wish there was a lender who would subtract the cash-flow from the housing debt instead.

Also, I will call the NOI for property A NOIa and the same for property B.CFa - CFb = (NOIa - V - M) - (NIOb - V - M)Or:CFa - CFb = NOIa - V - M - NIOb + V + M = NOIa - NIObSo, when the formulas are used to compare properties, adding or subtracting a constant for vacancy or maintenance makes no difference.Universal ConstantsThere is a common belief that you can create a universal constant for vacancy rate, maintenance, rehab, etc.

Now if this would be a second home it is a different decision you have to decide if you have carrying costs whether it is worth it and subtract those off your projected profits.

Start there....figure ARV...subtract rehab cost estimate...then determine your offer.