Multiply the out of pocket by the ten deals he's going to do the first month he needs about $210k to get started so I suspect he's not planning to bring the mortgage current, but I might be wrong.In my claims work I've known many agents who closed outside the box transactions, it's not because all the others weren't smart enough close them, it's because the ones who didn't, didn't want to run the risk of losing their license or winding up in prison.Some of the posts I read make it sound like searching and examining title and closing transactions is a walk in the park taking no skill, deserving little compensation and less respect. 

By multiplying this with subject property's square footage by 2,263, our total equates to $280,476 (ARV – AVG SOLD).

One great metric to add to the mix is GRM (Gross Rent Multiplier).

The building has a Gross Multiplier of 18.   

You take the estimated ARV (after repair value), multiply it by .70, then subtract the estimated repair amount.

The Price would drop occasionally but the owner (recent heir) then lost the last tenant, so we thoroughly inspected it ourselves & my 'can't swing a hammer' partner offered them $38k less than the original asking price (CASH, no conditions) & we were told to 'go forth & multiply'. 3 weeks later our offer was accepted.

An example of the taxes,   if a house is assessed at $100,000,   divide that by 3=   $33,333 and multiply by 17% =  $5,666 in taxes for a $100k property.       

You've essentially generated $40,000 with $30,000 which has multiplied your original investment by 1.3.

Take all those items and multiply $/mo for that item and multiply by the approx age of the item ... add them all up and that is the minimum size of your CapEx reserve fund ... it is also a good idea to add several months carrying costs to cover vacancies as you have described above.

Once you have that number, just multiply the number of hours you're working by that hourly rate, and that is the expense you should be applying to your P&L.