Subtracting half for all maintenance and vacancy means I net $5,700 per year.

I don't mean phoney cash flow (rent - PITI), but the real deal after subtracting reasonable expenses.

That works out to $200 and after subtracting the $100 HELOC fee it saves you $100 per year. 

The $1974 came after subtracting my expenses from my gross rents.

Once I figured out that my basic education in math (adding and subtracting) was more important than my college Calculus, (and accounting), I started smiling again.

The ARV is the final price that the house flipper is going to sell the property for, someday.From that number we need to subtract out all the costs associated with the deal.

So, to make a profit you have to subtract 8% for sales, and whatever renovation costs and any carrying costs.

If you buy right, meaning at a discount* that subtracts holding costs and professional remodeling, you will do great :)*some properties in A class areas don't allow for a discount, but don't overpay. 

Apartment buildings, commercial business offices, and small strip malls are all great candidates for determining this value.Net Operating Income: To find this number (which should be positive), subtract your first year’s operating expenses from your first year’s gross operating income.Cash on Cash: This formula is used to compare the first-year performance of competing properties.

If I subtract 15K for rehab, that leaves 20K.