Because after I subtract everything my offer is typically 50-60% which obviously isn’t the most enticing.

The land contract note amount will be the balance owed after the above credits have been subtracted.

From that I’ll subtract CAPEX (2% on new builds, 5% on older) and leverage costs so I can get down to a pre-tax cash flow.  

We always have a few rehabs in the loop to keep the machine running without any downtime.For profits, we calculate all our rehab projections, taxes, insurance, utilities all holding closing and selling costs as well as  interest on a six month hold period then we add in 20k for profit subtract from sell price and that's the max we will pay for a house.

In fact, when I buy a rental house, the value that we use in calculating the depreciation has to take the purchase price and subtract from that a land value - because there is no depreciation for the land.This is the difference that I think you are looking for ...

Thomas, perhaps there are some policies that work as you described, however I have personally seen whole bunch of policies that work as follow:1) If you have outstanding loan it will be subtracted from death benefits2) If you pass away the insurance company only pay out death benefits and keeps the cash value. 

This is evaluating my hard work finding scarce deals and putting equal value to it.The way I see it, I had a lot more risk than the flipper would have.A flipper CAN do due diligence, find out an accurate ARV, and even subtract 10, 20, 30K from the ARV just to be sure, and calculate quite accurately what the minimum profit will be he will be making.He can then say yes or no to said deal, and no big deal.Me as the wholesaler have no such luxury.

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

Take your gross rental income and subtract it by your PITI and thats your cash flow.

Equity is the value of an asset (in this case, your business) after subtracting any liabilities.