That number divided by 12 months ($85) is the actual out of pocket per month after expenses when subtracted from the owners original $1225.

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

@Sven SimonI hate bringing bad news but this quote "When I purchase the property, the commission is paid by the seller" is not completely accurate...Commissions are an expense that is subtracted from the sellers proceeds on the HUD1.

To calculate your taxable gain you will subtract the year 5 book value from the $1.2M.

I also disagree on the public price, the public price on a sold home does not subtract credits at least not in my experience.

If you want to give $100 credit each month towards the purchase, instead of giving credit to the Purchase from the rent payment, just add up all the credits they would have gotten (if you were giving them monthly credits), and subtract that from the P.A. price...from the start.So if you were selling the property at $100k, and wanted to give $100/month credits ($1200/year) over a 3 year period, just subtract $3600 (3 years of $100/month) from the $100k value, and sell the property to them for $96,400. 

Through D4D I have found, researched and mailed about 8 owners and continue with this practice weekly.I spoke with one of these D4D leads and walked though one of their properties however the numbers just didn't make since when taking 70% of ARV and then subtracting out rehab cost, closing costs and holding cost. 

.), average the annual return over a long period, and subtract typical broker fees.

No matter how much fuss you give, swear or yell at me, I am not making this stuff up, this is the number we can make our minimum desired profit and it is what it is.Now as a wholesaler, you just add (or more accurately, subtract)  your fee to this, and that is your offer.

Here is a quick way I run the numbers to see if a deal is worth looking deeper into or not:1) Find the Income: You can do this by taking the annual income of a property and subtract a - 5% vacancy factor.