(Before you subtract costs of acquisition, lending costs, carrying costs, cost of rehab, cost of sales, capital gains, etc) that number is about $67,000 on a national average according to ATTOM Data Solutions. 

If I add up all of their rent payments then subtract the purchase price, repairs, taxes, and insurance, I've gotten all my money back plus $10,500.

I use the land value and subtract that from the purchase price to get basis.

If I subtract about $4000 a month in overhead, including the care givers, the utilities and the upkeep, then that is $8000 a month in profit

Then subtract PITI and Utilities.

A few quick questions about the 1% rule while digesting the BP Intro to Real Estate Analysis.Do you subtract vacancy from gross monthly rent to get the numerator?

Try this on for size: If the national debt is 16 trillion (I believe you can subtract a year's tax revenue) and the total net worth of all Americans is 54 trillion, that means if every individual would pony up 30% of their net worth, the debt would be zero.

The capital gains would be calculated based on your purchase price minus expenses and then subtract that from your sale price minus sale expenses.

The cashflow looks good, if it doesn't need any work:Rent: $1300Expenses: $650NOI: $650Payment: $449Cash flow: $201If there is work to do, subtract that off.Be sure there's really a market for those type of units in that particular area.Be sure you can't buy the house next door even cheaper.But, if its a scary location, it may not be such a good deal.

So, if you're buying a property with a PITI of $1000, and the rent from that place is $1600, they take 75% of the $1600 (which is $1200), subtract PITI of $1000 and get a net rental income of $200.