Using $2200 as NOI and subtracting $800 a month, I get $1400 as the max payment.

I am willing to subtract the $10,200 for a realtor commission, but would not be interested in handing over 20k for profit and/or errors.

Subtract about $1250 if you don't need a new circuit box and another $750 if you don't need a new meter.

You need to multiply that by 70% (0.70), subtract the repairs (let's say $20K) and then, subtract your profit (let's say $5K).

I'm hearing from private lenders they want 8% preferred and 20% cash on cash on their lent money for the down payment, which often is in the $500k to $1M area.So working backwards, taking NOI subtract off debt service, insurance and taxes is what the investors expect as their preferred being thrown off and more importantly is there anything left over to pay yourself?

OK, that makes it too expensive. 70% of value might be OK if it needs no work (though why would it have a big discount if its perfect), but you have to subtract off the amount of work.Your LLC is going to buy this and wholesale it to you.

Now, subtract off the $20K for work, and you have a $217K max price.That's not your max offer, its your max price.

Why wouldn't NOI be 50% of gross rents, and then subtract the mortgage payment?

I then project out what my cap rate would be at those exits then subtract whatever debt service is left and come out with my sales and gain numbers.

. $3,700 month passive and I'm paying down the mortgage fast so it will be paid off in about 50 months which will subtract another $1750 off expenses.