.@ 3,000/mo * 50% = $1,500/mo * 12 mo/yr = $18,000 NOIFrom that, subtract your "mortgage payment" to get your cash flow for the year.Divide your cash flow by your investment ($100k) to get your Cash on Cash return.To me, that's one of the most important numbers to optimize as I am looking to maximize the return on my resources.

TBer pays 3% at move in, and may pay a monthly option payment, both subtracted from purchase price when and IF they buy.

So when the new roof/furnace, or other calamity occurs down the road, they will convince themselves that this is a "one-off" and in their own mind will not record a 'subtraction' from the return they are getting.

Subtract 5%, add 5% and see how the numbers work.

But it would be good for you to know.If you have been by the property, I would subtract any repair estimates from the $30k number as a basis of offer.

Then after subtracting the $2000 for title insurance and closing costs, and then the $125K for the loan that's being assumed, the net to the seller is $10K.

You'll probably add or subtract from that list after you get there but this will insure that you go home with some knowledge that can propel your business.Connecting with Real ProfessionalsTo me this seems like one of the most important reasons to attend.

Hey Danny,I think you're messing up some numbers above.For the conventional loan and hard money scenarios, you need to subtract your debt payments from the $5400 before you calculate the COC.For the cash purchase, your gross income is $10800, but your cash flow after expenses is only about $5400, so your COC is actually half what you indicate.In reality, the returns on this deal are considerably less than you've calculated in your scenarios.

Subtract debt service (P&I), and I'm guessing your cash-flow is somewhere in the $12-14K range.Your all-in costs to generate that $12-14K in cash-flow is your $38K investment plus the $25K to finish off the fourth unit, or a total of $63K.That puts your cash-on-cash return at somewhere around 20%.

The 70% that rehabbers use includes repairs, so to market to flippers this must be subtracted out.