I am not an accountant, but I don't think when you calculate capital gains that you get to subtract your cash investment.

But taking your adjustments into consideration, then I'd subtract 13k from 94.5 and come out with 81.5k.

Subtract the expenses from the income5.

If true, for a back of the napkin calculation, you will need to know the following things to determine your cash flow:1. monthly mortgage payment2. monthly cost of property insurance3. monthly cost of property taxes4. monthly rent that you can get from the property.You'll add up steps 1-3 and subtract from step 4.

From that, subtract out market rate for Operating Expenses (Taxes, Insurance, Management, Maintenance, Utilities and Repairs/Reserves).

Once I have determined the value of the subject property in rentable/livable condition, I figure out the repair/rehab costs of the subject property and subtract it from the ARV.

As such, my P&L flows as NOI, less basis depreciation, less improvements depreciation, less interest expense to get to pre-tax income...then I apply a tax rate to get to Net Income and add-back depreciation and subtract out my principal loan repayments as only interest is tax deductible.

In your case with $95K in equity at a conservative return of 5% you need o subtract approximately $400/month from you present cash flow numbers to be more accurate.rent ($1700) - 40% expenses ($680) - mortgage ($752) - 5% return on equity ($400) = (-$132)Your property will likely show a negative cash flow of $132/month long term or worse. 

Net Self-Sufficiency Rental Income is calculated by using the Appraiser’s estimate of fair market rent from all units, including the unit the Borrower chooses for occupancy, and subtracting the greater of the appraiser’s estimate for vacancies and maintenance, or 25 percent of the fair market rent.In addition, for all three- to four-unit properties, the Mortgagee must verify and document reserves equivalent to three months’ PITI after closing.

If so, I would subtract the estimated costs of repairs from the comps and accept no less than that.