Rents total $2400 per month, and you'd want that to be 2% of the "all in cost" of the property, so multiply $2400 by 50 and you get $120K; from that you subtract repairs needed to get at the maximum amount to offer.

Maybe some wording could be added or subtracted to increase the response rate of truly motivated sellers.

Then you subtract out the assumed mortgage of $1.07mm and you are left with $425k cash that you need to bring to the table.

I then just subtracted my remodeling costs and my desired profit and I had my maximum offer.

Therefore, to determine your cash flow, subtract the mortgage payment from 1/2 of the gross rent.You should also be aware that the vast majority of people who lose their house to you will not be able to buy it back.

So I'm guessing that you first ask them if any repairs are needed and then subtract that to come up with how much you could pay.

Collect the rent, subtract any fees, and send me my check with a statement.

Positive cash flow is determined by subtracting ALL of the operating expenses and the mortgage from the gross rents.

For example, a landlord can clean stoves and refrigerators all day long (popular items left unclean by tenants) but unless he paid a maid service, the magistrate won't let him subtract the expense from the deposit.It's in the lease usually that you can't screw the landlord and use the cleaning and security deposit for the last month's rent.

IIRC they just have you take your Federal AGI, subtract a maximum of $5K for what you paid in Federal taxes and then hit you 5% on the first $50K and 9.3% on everything above that!