The total amount owed, principal, interest at default rate, legal fees, processing fees, filing fees, foreclosure fees, etc. will be totaled and the amount the property sold for subtracted from this number.  

Know that Effective Gross is after debt services before after expenses subtracted.

If this new total is lower than your current monthly expenses, your current home's low-interest rate might be more of a financial constraint than a benefit.Factor in Potential Rental Income: Since you're considering a multifamily property, don’t forget to subtract the potential rental income from your new monthly obligation.

(Just take your old rent and pet deposit, add them together, subtract what you’re allowed to charge for pets and list it that way instead.)IE. old listing was $1,500 plus $100 pet rent    New listing is either…     SFR 3/3 NO PETS!  

Personally, I would keep a running ledger with additions and subtractions.

Depreciation will get included (subtracted) each year (I always date that on December 31.)  

In most markets they are value subtracts (I.e. add less value than they cost).

They were willing to outbid us, pretty much regardless of our reasonable bidding price to avoid that happening, because they could subtract their investment off the cost of the property in their calculations.I would encourage you to look up who owns the property on the property appraisers website in that town.  

As you mentioned for myself, do I subtract the 12000 i paid towards principal and say I really lost $4000 (principal paydown $12k- Net income of $ 8362 = 3638, which would be a loss).

Subtract your debt to your gross monthly income and multiply by 36% so you see the max you can pay monthly.