Here in California the Electric company allows for Net Metering where on a 4 plex with 5 Electric meters the Power generated from the Sun is first subtracted from my Electric bill.

When factoring in cash flow, take your rent, subtract the mortgage (principal and interest), taxes, insurance, and management company expenses). 9) Continue to read and talking to other investors.

Other areas it may subtract value.

Start with the potential gross income to determine the value and work backwards from there subtracting development costs, building costs, commissions and interest expense.If the project looks feasible from a financial standpoint the next step is to check with the city or county planning and zoning department to get an idea if your concept will work, if you can build what you would like to build and what is required for all approvals including site plan, building permits, proffers, water/sewer tap fees, bonding requirements, inspections, setbacks, lot coverages, parking requirements, height restrictions, C/O process and time frame for all approvals.You also need to check with the utility companies and get an idea of availability and cost estimates from them for water, sewer, power, gas, cable, installation and connection requirements, tap fees, hookup charges, transformer location and relocation, power line and power pole relocation issues.

When you buy the equity, it is a cost to you that must be subtracted, like any cost, from the return you get when you sell the property.  

Instead, this tax deduction is subtracted from your gross earnings, which allows you to pay taxes on less than the gross processed amount.

With that being said, they take that number and subtract your current balance and that’s what’s left over.

Subtract that number from all the income (rents) for each year you held the property plus the difference in what you paid for the property and what you sold it for.Now subtract closing costs and the original DP.What's your answer? 

Are the taxes calculated before or after the "passthrough" taxes have been subtracted from the profits (I'm guessing before)?

EmhofAs others pointed out, your Net Worth should be calculated by taking into account all your assets, (401k, IRA's, brokerage accounts, boats, etc, whatever else assets you own) and subtracting your liabilities.