I take 70% of that number, and then subtract the repair amount from the 70%.

But the truth is, those costs are taken into account and subtracted from the offer price to begin with.

How did I miss basic subtraction?

The old tenant has received her damages letter subtracting the security deposit.

For a real world analysis, subtract the mortgage payment (P & I only) from 1/2 of the gross rents.

IF you will be paying all the utilities, then you need to subtract another 7 - 10% which will eliminate your cash flow completely.Unless you can reduce your mortgage, I do not think that this is going to be a very profitable investment.

Well the first question I always ask here is have you factored ALL expenses into your cash flow, or are you just taking your expected gross rent and subtracting PITI?

Subtract that amount from $475, and that's your best guess (barring any *real* data) at your cash flow.Of course, if you're managing the property yourself, you'll save about 10%, and your expense ratio will be closer to 40%, on average...but that doesn't account for your time spent managing, which I imagine you don't want to be free.

I subtract the 13K annual allowable gift without having to be taxed and get 14K.

I took their starting price and subtracted 10k which was what I felt my worst case startup costs including financing and finding a tenant would have cost.