In the mean time you've accumulated almost $40,000 in negative cash flow.Even banks will deduct 25% of the rent, then subtract out the PITI when qualifying you for a loan.

there are a lot of variables, i.e. the condition of the trailer, how many bedrooms, the location of the park and how much you have to subtract in lot fees, taxes and insurance.

Hey everyone,just wondering how you would find out what to charge for rent, which is obviously what you subtract from expenses to find your cashflow.Is it derived from similar properties in the area?

After the tenants have left, I do whatever is needed to clean/repair/turn the property and then subtract any damages and cleaning from their deposit based on the move in/move out form.

I heard this method can be quite extensive.If I understand you correctly, once I find a good value I should reduce that number in half and then subtract repair costs.

Subtract 50% for all expenses, leaving NOI of $400.

I just want to make sure I have an understanding of the 50% rule. 8% Vacancies6% Insurance11% Taxes11% Maintenance/Utilities6% Management8% Major ProjectsWith the remaining 50%, you subtract the mortgage payment.

It will state how much you are assigning the original contract for, and you can make sure that you subtract the deposit from that amount on the assignment contract.I usually just tell end buyers that I am assigning the contract.

Subtract out the $19.5K in buy closing costs, holding costs, and money costs.

So if he sells it to me or one of my rehabber contacts for the 155k, 45 k for him (well ok maybe some holding and closing costs subtracted out of that).