Originally posted by @Bob Bowling:Originally posted by @J Scott:Good answers above, but a couple minor things I might articulate differently...here's how I would sum it upAnnual Cash Flow Before Taxes = NOI - CapEx - Debt ServiceCash Invested = Cash Out of Pocket for Acquisition + Rehab Costs You do not subtract CapEx & Debt Service from NOI.You are absolutely incorrect.As I -- and every other person in this thread -- has indicated, cash flow is all cash in and cash out on the property, and that includes capex and debt service.I'm embarrassed for you, Bob...anyone who has ever purchased an investment property should know the definition of cash flow.Spend 10 seconds typing "cash flow" into your preferred search engine and click on the first definition...here's my first click:http://www.entrepreneur.com/encyclopedia/cash-flow

Many will not even call an agent to sell as they are embarrassed to have to admit they are behind. 

There is a great saying "if you're not embarrassed to make your offer, you're offering too much!"

She said I embarrassed her at work because she does not open her mail someone does it for her.

if your not embarrassed by your offer then you offered too much!

I am sure you have heard experts say things like:- Tell everyone what you are doing and what types of properties you are looking for, Do not be embarrassed or shy about REI. - Take action and look at properties and get out there, do not plan your life away and hide behind "the planning stage"The general idea here is that you need to get out and let the world know what you are doing and the world will respond and THEN and only THEN you will have opportunities arise that can be closed on in creative methods.  

I would post the names of people who do this on a regular basis but I don't want to embarrass you, I just want you to feel convicted.

However, they will incur time, expense, embarrassment, etc.

If you aren't a little embarrassed by your offer, you are probably offering to much.

I use a system I call C&R, as a young investor, many years ago, I had the apprehensions about making offers, my big concern was suppose they accept my offer, where am I going to get the cash to buy it, and could I get approved, would I be embarrassed if I could not perform.....WOW.......what was I to do?