Net operating income is the income before subtracting the mortgage payment.Good luck.Bill

When you own an investment property, the deduction is based on the improvements portion of your purchase price (ie: subtract the value of the land from purchase price).  

Then and there I thought that if I subtracted how much I would spend to fix the house the house was affordable.

Estimate the cost of renovation and subtract from the calculated value.Step 5.

Assuming all those costs are correct (sell closing costs look low to me by about $20K), your sales proceeds after paying off the loan would be $95K:Sales price $400Kless sell closing costs $20Kless loan payoff $285KNet proceeds $95KThen, you would subtract the down payment and the other cash you've invested.

So subtract all the taxes and her situation is only slightly better.  

If they are adamant about the cousin staying and you want this property then take the agreed purchase price and subtract six months of fair market rent from the sell price.

Keep in mind, that if you have to knock down a property, you have to subtract the cost to do so.

Or if I am using my own cash for part of the rehab, would I enter that cash amount in the cash field and then fill out the other parts subtracting the amount I would pay in cash?

Do the math on the sprinkler gpm subtract from total equals tenant usage, determine if excessive ...I billed a tenant for the 3rd quarter, took an average with the past 4 quarters billed the difference, as the lease allows.