Take Dale Osborn's formula and subtract the projected costs of repairs needed to get max offer amount.

I usually just look at the final price (after repair value) and subtract out the repair work, holding costs, closing costs, and my profit.

Shouldn't I be going by the the 40% rule since I plan to manage it myself, which if I remember information stated on this site correctly, subtracts the standard 10% management fees from the 50%?

Okay subtract out the repair costs.

This total # is subtracted from your rent.

Then I'd subtract whatever profit I wanted from the cost of the land minus the demo to determine my offer price.

Rents total $2400 per month, and you'd want that to be 2% of the "all in cost" of the property, so multiply $2400 by 50 and you get $120K; from that you subtract repairs needed to get at the maximum amount to offer.

Maybe some wording could be added or subtracted to increase the response rate of truly motivated sellers.

Then you subtract out the assumed mortgage of $1.07mm and you are left with $425k cash that you need to bring to the table.

I then just subtracted my remodeling costs and my desired profit and I had my maximum offer.