How much do you project in profits (after subtracting your free rent)?

Meanwhile, be sure that you did not decrease your basis in the property by those taxes.The same goes for the $364, you will not subtract that from the basis of the property.By the way, I'm up in Lake County, if you're ever up that way give me a call.

As an example, perhaps they guess owner occupancy and subtract that from the total apparent occupancy. 

The general “hope” is to have a 30% gross margin after direct purchase and rehab costs, which is hard to do in today’s market.....from that you subtract out closing costs on both ends, commissions, financing costs, carrying costs, etc.

@Chudney WesleyBasically one quick way to check your DTI on your own is to divide your monthly debt services (car payment, property taxes, insurance, rent, child support, student loans, etc..) by your monthly take home pay (not including your rentals since you haven’t had them for 2+ years)  Alternatively, take your monthly take home * 40% then subtract your monthly debt services.

If this is a great deal or important to you, I would get him to agree on gross price, you will subtract back taxes and any monetary liens discovered later from this price.  

If others have an attached garage and yours doesn't you would come up with a value for the garage and subtract that for yours.

Your bank will probably require his schedule E sop don't feel bad asking for it, or at least a 2014 p&lJason take a look at Brie's numbers here and then subtract the mortgage payment you figured on your 15 year loan and you'll find yourself losing $500 every month.  

Subtract the $5K (just going higher than the $4K “ask”) and you get $220K.

A simple formula formula for determining cash flow is to subtract the mortgage payment (with 100% financing) from 1/2 of the gross rent.