https://www.biggerpockets.com/renewsblog/biggerpockets-podcast-307-science-setting-achieving-big-goals/

Impossible to know every buyer's rehab numbersI have a very rough rehab sheet I use and I use that number in combination with approximate ARV and compare to how hot the area is (How many actives, are pendings much higher than closed, etc), what have buyers been paying in the area, how much risk in the rehab (Cosmetic only vs roof/AC/windows/Pool/plumbing/eletrical), and make the offerIt's not an exact science

I'm not comfortable investing in smaller out of state deals like this but I'm always fascinated by the stories.

I personally just switched over to Hilton Business, but no science to it ... just wanted to hit the Maldives with an overwater cabin

Finally,  there is no exact science ( as evidenced by the fact that you will probably have numerous opinion variations to this question and if you have 500 CPAs in a room and ask them, you will probably have 500 opinion) so the easiest way, if you are unsure and you prepare your own tax returns, I would keep it simple.  

Then you add the art to the science and consider things like your job stability, property locations/demand, commission/salary, children/spouse or not...plus just your ability to sleep at night and add those to the equation.Good question and a good exercise to monitor your personal balance sheet regularly.  

These are all fascinating ideas.  

This is where some art more than science can come into play.

I find this site addicting and fascinating.

It's a numbers game. 98% of agents are worthless from an investor perspective so you just have to keep hunting for the good ones who possess a little business sense and investment knowledge.One thing that always fascinates me is just how few agents invest in any form of real estate.