Low end rent (1225-1300)Monthly Income: 103,825 Yearly: 1,245,900Other income (laundry): 5,000 (very conservative)AGI: 1,250,900 Figuring out Acquisition Price Expense analysis @ (50% rules) = 625,450Net Revenue: 1,250,900 - 625,450 = 625,450 (subtract the 50% operating expenses from the gross revenue to solve for the net operating income (NOI).

They used axes to remove a lot of the walls to get to the piping and wiring, leaving behind only the barebones structure itself.Without going into too many more details, I will just say that it needs to be knocked down.I'm thinking I should take into account the value of the land alone, subtract the amount of money it would take to demolish the house, and then offer a wholesale number on whatever figure that would be.What do you all think?

Subtract 80 years and change the city to Detroit and I think this chart would be reasonably accurate (although the CS data didn't exist.)

Hi @Natalie Kolodij,The PITI and other actual expenses are accounted for when we subtracted them from gross rent, to arrive at our net income number. 

Subtract out some amount for cash flow

If you don't want to do that, I definitely suggest that you have a CPA prepare this year's return as there will be some extra complications with the property sale and depreciation recapture.Essentially, you get the "credit" for that $22,273 in the year of sale as that is subtracted from the sales price to reach your capital gain amount.

On an ACV policy you may get a payout of $10,000 x 50% depreciation = $5000 payout then subtract your deductible (if $1000 deductible). 

For Flipping:1 - Split up properties into groups based on sq ftg, with the high end not mor than 20% more than the low end2 - Take sold comps and put them into these ranges.3 - find out the dominant sold comp in each range.4 - Do the same for properties for sale, using the exact same sq ft ranges.5 - Add rehab cost to the for sale numbers.6 - subtract the 4Sale/rehab (with closing costs) from the Sold comps in each range...and you have the potential profit of each range.For Holding:Replace steps 1 - 3 with rentsRe-use steps 4 and 5Replace step 6 with rents - monthly expenses (don't forget to include the financing based on the for sale comps)This gives you your potential cash flow.Remember, and this is very important, each sq ftg range is separate, and should not be mixed...especially if you do could mean a deal works. 

IT'S A PLAN FOR THAT DEAL OR TRANSACTION, I ADDED/SUBTRACTED FROM IT, UNTIL I GOT A PLAN.

A DSCR is arrived at after subtracting PITI & a realistic operating expense not a percentage.