Subtract the $20K investment of purchasing the NPN + $2K in attorney fees for servicing/documents on the high end and I've just netted $49,300/$22,000 = 224% ROI.I can take the $71K and buy 3 new assets now and then those three turn into 9 assets, etc....This is why I love the NPN business and not just traditional owner financing/lending.  

This is my PETIO system:  Property - do a quick estimate of valueEquity - use online and county resources to determine all mortgages and liens and subtract from valueTitle - use record title (not tax assessor) to determine owner of record. 

For instance, when I'm calculating my expenses with the mortgage included and I subtract the expense from the rental income, I'm left with the cash flow.

Put that payment in your mortgage calculator to get the max purchase price and then subtract rehab costs, closing costs etc.EASY!

In other words, subtract the mortgage payment ( P & I) from 1/2 (50%) of the gross rents.

Subtract property taxes, insurance (high cost on coast), repairs and maintenance, depreciation reserve, vacancy, etc, and what left?

I have not yet experienced that, my guess is that they subtract it from their next payment to you. 

From what i can see from my house its a little bit dated, so would you subtract any and all repairs from the market value and offer that?

Current Tenants and RentsMy current rent is $567Currently have a tenant with his wife who has been the caretaker for 15 years on a term lease till April at $535Other rents all month to month at $580, $550, $535 total of $2,200 month ( 1 of which I will be taking over so subtract 580) for $1,620 monthly.

It all sums up per column at the bottom.If I was guessing, one takes the gross rents and subtract all the monthly cost, plus rehab cost to see if the portfolio has postive cashflow each month after monthly cost and rehab cost.Just wanted to see if anyone knows about it, and is my assumption correct, or is there some other formula used to product results, like debt to service ratios resulting number, and creates a threshold they are looking for?