Multiple the value from step 2 by .7 and subtract the amount determined in step 35.

I am assuming they would subtract things out for their security such as annual expenses and vacancy?  

I was told that if I make return of capital distributions that I can subtract that from my total revenue and thus it will look like I had less (or none) profit, even though members were distributed some cash.  

Here are the numbers:Asking 160k, but I plan to offer much lessUnits are 2/1’s, rent for $595 eachBuilt 1984Tenants pay utilitiesIncome: $595 x 4 = $2380 / month or $28,560 / yearExpenses (per month): Insurance: $166 (no idea really, just guessing)Taxes: $238 per DCADVacancy: $238 (10%)Management: $238 (10%)Misc repairs/Long term capital expenses: $300^ I just took 50% gross rents and subtracted all other expensesNOI: $1200/month = $14,400/yearSo offering $144k would put me at a 10 cap.Now the financing.

Calculate your monthly cash flow by subtracting expenses (including mortgage payment if assumable, property management, insurance, taxes, repairs, and any other applicable costs) from the expected rent.4. 

On the other hand, you should be subtracting an allowance for vacancy and credit loss from the gross income.

Take their deposit and subtract all the damages.

(subtract number for each item as you go down)ARVRehabAcquisition fees (escrow/title)Holding Fees (utilities, taxes, Ins, HOA)$400 Home Warranty (total waste of $400)Sales Costs (Commissions)Buyer's Closing Credits (Typically $5K in CA)Seller's Closing Costs (My Flipper)Wholesale Fee (My paycheck)Offer price-----------------The amount left is what your buyer will make as profit.

Subtracting $20k for closing costs and reserve, at 95% LTV you can purchase $1.3m RE.  

He stated a few times that he thought most landlords really didn't want to evict, only pressure the tenants to pay and that they could likely work something out.For the remaining 10% of the 10% (one person today) they disagreed that they were behind in payments because they said there was some alternate agreement that had been made between landlord and tenant that they could subtract costs from the rent payments because the unit was uninhabitable.