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.

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.