Subtract half for expenses, subtract off what you want for cash flow, then figure the max price from the remaining money.I realize you may be buying this condo to occupy yourself.

OK, here's how I'd do it.Rent: $1900/moExpenses: $950NOI: $950Desired cash flow: $200Max payment: $750Max loan: $112,730 (7%, 30 years)I'd then subtract off the needed work.

I wasn't too good at addition and subtraction (even with a computer program) so I took a chance and hired a part-time bookkeeper.

Then subtract out your debt financing and the balance is your cash flow.Keep in mind this rule is based on making assumptions and averages and should not be used as the final decision to buy or not to buy.

Then, subtract your P&I payment out of the remaining $800 and you get your cash flow.

Subtract from rental income of $13,800 the three types of expense: depreciation ($2,818), interest expense ($9,270), and operating expense ($2,500).

To get the net income, what do I subtract... any cost associated with the rental property, but not including the mortgage?

Recalculate your deal, subtract out your partners' profit and see if it still makes a profit for you personally.Private money lenders can be good friends indeed.

I have read now that you can subtract selling costs (commission, etc.) from the sales amount which doesn't boost my borrowing from my lender to make up the difference.

Then subtract mortgage payment, property taxes, insurance, repair fund, and vacancy loss.