Then, after subtracting the finance cost you have to have enough cash flow to satisfy yourself.Bill

Subtracting your mortgage balance of $150k + $15k for estimated closing fees, You'd net about $210,000 at closing. 

Therefore, to determine your cash flow, you can subtract the mortgage payment from 1/2 of the gross rents.I like to have a minimum of $100 positive cash flow per month per unit.Good Luck,Mike

Subtract your fee.

I typically subtract 3%, of the ARV.Realtor Fees: What is the commission you are willing to pay your listing agent (unless you are the listing agent) and the buyer's agent.

The reduction is com-puted by subtracting from the actual rent the estimated value of the apartment without the essential services.

(Single biggest valuation mistake caused by a lack of knowledge);Knowing what it will cost to tear down*, move, and reset the home and subtracting that amount from the valuation which itself should reflect a lower value as if it were going to be on a gravel sales lot. (* This cost should reflect the costs of tearing down decks, sheds, etc and disposing of them as well as the home tear down costs.)I took the course out of curiosity.

The price your property will sell for in the current market determines your equity, your "equity" does not determine the market value.Leasing your current residence, while it can be a profitable financial move, usually does not result in improving your ability to obtain a loan since lenders will credit you with 75% of the income from a one year lease and subtract your mortgage, taxes, insurance, HOA fees, and maintenance charges.  

You can now subtract all the development, permits, entitlement,  construction , cost of capital, & required profit from that number to determine what you could pay for the dirt. 

At least this much should be subtracted from their asking price if they are trying to sell FSBO, given they won't have nearly as much advertisment and nil representation.