So you subtract the 20% off of your property cost to figure out your loan amount.

Subtract the monthly loan payment and it's $23,269.

Take $100,000 and subtract down payment.

They will tell you what their lowest NET allowable to HUD is and this figure can be reached by subtracting the listing agent, your agent ( if you have one), and any closing assistance you are asking for up to 3%.If you waited for the property to mature on the market then maybe you could get a lower acceptance price.

Cash flow, subtract monthly debt service, future vacancy projections and future maintenance from the monthly rent to get your cash flow.

JADU are value subtract as they typically reduce the value of the RE and often best option at selling is to remove the JADU.12) if the ADU is being added to a SFH, the ADU can make the house rent controlled (if it is over 15 years old).  

Then subtracting the loan amount. 

They subtracted the estimated cost of renovations to come to the purchase price.

When a fair "compensation" is subtracted for the net for the investors time, the 12% return usually evaporates quite quickly.Utilizing property management companies for these properties is also usually unrealistic as most good property managers do not want involvement in these "problem" properties.

What's important to remember though is that QBI only matters if you still have a positive number (aka net income) after subtracting all expenses, including depreciation, from your rents.