Save money on the gift and just subtract it off the increase.

I might of overly complicated the matter because I was attempting to develop an excel spreadsheet using a formula I came up with, which is the subject price per square foot subtracted from the comp price per square foot.  

When I pencil out the cost of $3650 and my expected return is $10,443.60 (after taking the actual rent increase of $11,604 and subtracting 10% for vacancy) it appears that I would have a 286% ROI. 

You multiply the value of the house by the combined LTV number (80% or 90%) and then subtract how much you owe on the first mortgage, or any other liens for that matter.

A rehab price is just a number until you give it context within your project.In order to determine whether or not an investment property can turn a profit with your strategy, you will need to subtract your renovation budget from the after repair value of the property.

Then reverse engineer that and start with the monthly payment. example: if you house would rent for $1500 per month, then you subtract the escrow (taxes and insurance) lets say those added up to be $450 so you have $1,500-$450= $1,050 << that can be your 30 year fixed loan payment plug this inter this calculator: http://bretwhissel.net/amortization/amortize.htmlthere is your new loan, now you need to add a 10-20% downpayment on top of that, that will be your asking/sales price.The theory behind this is that people are willing to pay market rents (maybe a little more) so that they 'own' the house instead of rentingIf you want to hear more about owner financing I would listen to Mitch Stephens / Grant Kemp. they are both based in Texas and have tons of great infohttps://www.creativecashflow.com/https://1000houses.com/

I would assume so, but it's best to check with the lender to see how they interpret official FHA guidelines which read:"Net Self-Sufficiency Rental Income is calculated by using the Appraiser’s estimate of fair market rent from all units, including the unit the Borrower chooses for occupancy, and subtracting the greater of the Appraiser’s estimate for vacancies and maintenance, or 25 percent of the fair market rent."

To make sure my question is clear, in awning revenue, is cleaning fees included and I need to subtract them out of my gross?

We do not require any funds prior to release property information, however we do require a 5k DP when purchasing, that 5K will be subtracted from your purchase price at closing.

Then take that times a factor of 70, 75 or 80% and subtract your rehab costs to determine what you can pay for the property and assure yourself a good profit.