Subtract out your vacancy rate of 10% ($400) and another 5% for repairs and maintenance ($200) and that leaves you with $3400.

From there I subtract and add anything that would not normally be included in that price.

Subtract out all the expenses and the debt service and compare your cash flow against what your all-in invested capital is. 

Hi Natalie, I think he subtracted the $30k to show the maximum he can buy the property for and get the minimum $30k he will accept as a profit.

My current plan is to 1) Use a real estate agent and get comps for neighborhoods I found houses in. 2) Call and negotiate with sellers by asking what repairs are needed and subtract that cost from a (.60 ARV) and give them that as a first offer OVER THE PHONE.

Quick and dirty... take gross rents per month, multiply times 12 months of a year, to get yearly gross income.Then subtract 50% for expenses, or if you want to work and manage the property yourself, including light maintainance(for free), subtract 40%.

So you take your gross rental income, divide by 2 then subtract your PITI and that is your estimated cash flow.

So if gross potential rent is 2k I would go up to $120k and subtract from that any deferred maintenance that will need to be done.

Then I subtract any major repairs needed to get it rented.

It is at $1007 for a 3 bedroom and this includes ALL utilities paid by landlord.https://www.huduser.gov/portal/datasets/fmr/fmrs/F...In my opinion, I would subtract $50 off the rent for electric since you pay all other utilities.