Subtract the new monthly payment amount (with buying down) from the original payment amount (without buying down)2.

You determine NOI, then subtract CapEx which equals the amount of cash you have available for debt service.

Update on our 4-family BRRR project in New Britain, ConnecticutThe appraisal came back at 120k so with a 75% LTV loan our loan amount will be 90kHow this impacts our final numbers is outlined belowHard money payoff = 69kRefi closing costs = 5k (this may be on the high side)Refi loan amount = 90kFor those of you who have been following since the beginning, we were out of pocket 16k to start the project and since then we have actually made money every month since the property has been fully tenanted which it has been since March.So when you take the 90k (refi loan amount) and subtract it by the 74k (hard money payoff + closing costs) we should get out original 16k back that we invested and maybe even a little more if the closing costs are not as high as we expect.

I did not spend time running lots of numbers, I just wanted to inspect the units for repair cost, then subtracted that off and worked out a price with the seller that stayed under 90x market rent, if I'm under that number I know it's a good deal. 

That person can add or subtract a BOG 'service' at will.

Take monthly rental rate and subtract your mortgage, property tax and insurance.

One is the net operating income, which is the profit you make on the property after subtracting the operating expenses.

I figure I should get {$650.00(rent) x 11 (months (subtracted 1 month vacancy))} - {$300.00 (taxes, insurance and upkeep) x 12 (months) }= $3,550.00 profit annually (11.8% on 30K investment).

The Owner needs to have me do a w9 for them to pay me commission if I don’t subtract commission ,or even if I do subtract commission.  

I've found different lenders calculate DTI ratio when it comes to rental income differently.Some lenders take rental income (or a percentage thereof), subtract the mortgage amount, and then add the result to either the debt or the income.Others add the rental income (or a percentage thereof) to income and the monthly mortgage payment to debt.So, let's say a place rents for $4000, the mortgage is $2000, I make $5000/month, and I've got other debt of $2500/month.So, my DTI without the rental is 50%.Under the first scenario, .