I subtracted the repairs cost from the list price, and the agent submit my price reduction.

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.

@Mike Snyder,In your MAO calculations, you left out holding costs and closing costs as subtractions.

Take the value of the property (lets use the 1 mil property again), subtract the land cost ( we will say 250k), then divide by 27.5 (which is the number of years you can depreciate the asset over, then multiply by the income tax bracket you are in (let's say 30%).

I took the 70% of the ARV and subtracted the rehab costs and it got me 75k which is the PP, but could negotiate it down even more since there is no HVAC unit (it got stolen).

From there, take the ARV, subtract these costs, and subtract the minimum profit ($20,000).

If you typically pay a wholesaler $5,000 for a deal but you spend 20 hours sourcing that deal yourself (Bandit signs, driving for dollars, etc), be sure to subtract that much out of your investment profitHere's how I do it.  

Or they just subtract insurance and taxes and consider that all expense. 

Then we subtract yearly property tax (varies by county) about $1,500 and we subtract Home Owners Insurance payment - about $600 a year (not including HOA fees) that leaves him with about $2,000 a year profit.When you add lawn care, the broken water heater, the broken toilet, the paint job, replacing carpet, fixing the roof, pool care, anything and everything that has to be done to maintain a house properly to get top dollar when you sell,it becomes obvious that a house is a liability.mirror wrap is simply An AITD   same process same results.  

@Jonathan Hudak you have to make some assumptions in order to analyze your options.If you assume average appreciation for the area on the home over a 10 year period, trend the rents at historic levels, add the principle pay down, add the tax write offs, add then subtract the capital gains and depreciation recapture….Does that outweigh the return you might receive on $100k invested in an index fund at 8%?