Start adding up all the extras in one’s lifestyle and subtract this and the car payments, rent, cigarettes, beer ... and you will find out you may have a difficult time collecting payments.I have learned ways around this problem.

Lets say your bank has a 10 mortgage limit, you've now subtracted 1 from your combined total of 20 because of the co-signing.

At 5 years you subtract 250K from $19,500 (12K at 5 years ($2400 a year in our math above) and $7,500 NRF to offer a final adjusted selling price of $230,500.Hope this makes sense and helps.Regards,John

It is:Gross rents x 50% = Cash Flow before debt service (the 50% includes taxes, insurance, property management, utilities paid for by owner, maintenance, vacancies, etc).Once you have that number, subtract your debt service payment (principal and interest), and you will have the cash flow.Without the actual rents or your loan details, it's hard to provide an accurate example.

Do your best, and try to get an opinion from some local contractors if you can.Then subtract the Repair Costs from the ARV, and take 70% of that final number.

Subtract your P&I.

Then subtract debt payment and that equals your cash flow.

I asked if you got your cash flow by taking gross rents and subtracting PITI (principal, interest, taxes and insurance).

Subtract from that number the cost to build, including soft costs.

Assuming the 107/mo cashflow above is correct--don't you need to subtract the pm you would make on a buyout to get an accurate difference between the two?