PR's and beneficiary's know how to add but don't know how to subtract.

They set the FMR at comprable but then they subtract a utility allowance from that.

If your loss is due entirely to depreciation, line 18 on Schedule E, that means you were positive cash flow before subtracting the paper loss of depreciation.If on the other hand you were negative before depreciation was factored in that is negative cash flow.

Also, the J Scott book should be a very good starting point.Fixed Costs: This should include broker costs, taxes, utilities, transfer taxes, cost of money (of borrowed), etc. for the time you believe the rehab will take.Profit: Determine what you want to make on a deal.Once you have these four numbers, then take your ARV and subtract your (Rehab + Fixed Costs + Profit) and you'll have your maximum purchase price.

To find the host's payout take their acommodation fee, subtract monthly discounts, and get 97% of that number.

. $400 x occupied/paying lots x 12 x .5 / cap rate = valueHOME VALUE: If you can sell the home for 10k-15k than subtract out your sales, marketing, Reno, title transfer costs etc and maybe a little more for fudge factor and pay that for the home so you can at least recoup costs.

Another way to look at it is to figure the cost to add a second water heater and furnace and a second meter, and subtract that price from what you would offer if the work was already complete.Hope that helps!

Worst case, the entirety of the $23,400 contingency allocation is subtracted from the $42,000.00 leaving a balance of $18,600.00 in the account + the $5,000 if not utilized.I would still consider this a win given the balance in the account (approximately 10% of purchase price even if full budget was allocated) pl us equity pay-down and whatever appreciation the property sees.

Basically what you are left with after adding back all these items is the gross rent less any deducted expenses, and then the PITI and HOA dues are subtracted to come up with a net monthly net income figure to use to qualify.

subtract repairs and your desired profit (plus transcation fees, realtor commissions, etc.) off of your surrounding properties' values, to get what you can offer