in his video he says he wants properties that are listed for 100,000 + that's all he will deal with. you have 2,000 into him for the program, lets say you find a house for 100,000, he jumps in and negotiates for 75,000 purchase, now you have to put down 20% and carry the loan ( 15,000) + (60,000@ 4% for 30 years= 286 / m ) say it takes 2 months for a buyer and you sell it at 120,000. the property just made $55,000. your original closing costs are 3000 when you bought the house, when you sell lets just say the realtor is 6% commission ($7200). now i don't know if he subtracts those costs on his end or just the original margin, i will assume its the original margin so 55,000 @ 50%, he gets $27,500 for him and the same for you. not too bad, but now you have to deduct your closing, holding ( insurance, taxes, etc for those two months) and realtor fees) so 27,500 - 3000 - 7200 - 572 = 16,728 - ( taxes and insurance etc.) so now that 15,000 you put down is a total gain of nothing, you made him 27,500 but you have no gain at all, you just get your 15,000 back.

That is why the material list is important because it allows you to easily subtract the material cost from the estimate to calculate labor cost.

Subtract all costs from your gross income and that's the breakeven point of the purchase -- any purchase below that point is potential profit.

In the end I gave them 2.5% down (which was of course subtracted from the principal).

Get a conservative ARV from your realtor, multiply that number by 70%, then subtract the estimated cost of rehab your contractor gives you.

So then you subtract the "high" mortgage from the sales cost and that's what they'll have to come to the table with.  

Taxes are about $500/year.If I were to bring $20,000 cash to the table and finance the remaining $57,000 around 4%, Mortgage payments would be $275-$300 (approx $50/month/unit).So, if I subtract from the stated Net of $1853, 10% vacancy ($185), Mortgage payments ($300), taxes ($40), and 10% repair budget ($185) I end up with about $1,140/month.So $1140/month x 12 = 13,680.  

So from that I would need to subtract my mortgage, taxes, insurance, property management fees (if I go that route), and maintenance/repair savings.

When you're forecasting cash flows for your investors, yes, you'll want to subtract your management fee from the property's cash flow.

Subtracting 34% leaves $1472 in NOI.