PROPERTY INFO4 BR, 2.5 BA near Little Rock, AR$31,980 cash purchase (20% down, 30-year fixed)Property valued at $159.9KINCOME: - Rent: $1,295/mo (Year 1), with $50 monthly increase in Year 2 EXPENSES (Total $1,230.61): - P & I (30-year fixed at 4.75%) $667.29/mo - Property Management (10%): $129.50/mo - Property Taxes: $163.67/mo - Homeowners Insurance: $50.40/mo- Repairs/CapEx (10%): $129.50- Vacancy (7%) = $90.65RETURNS: - CoC = 2.42% @ $64.39/moQUESTIONS: 1.

These proceeds are held in escrow and the title company will issue checks to the contractors to make repairs.

In the Bigger Pockets calculator, "Repairs and Maintenance" are represented as a % of gross monthly income.

Any who I recently came across a house that was involved in a massive house fire and requires about 175k worth of repair.

I'm currently house hacking a duplex in College Park and the siding needs to be repaired/replaced.

Based on your report even after you put into repairs in you won't be seeing that $40k again.

Ie.asking price-$150KARV-$70KAfter repairs,wholesale fee, my offer would've been$ 49K.It seems ridiculous.

@Gloria Mirza if you are talking about a residential loan, and the property you are purchasing will have those repairs, then it has no effect on your DTI. 

Whatever you have left over from your annual rental income after you have paid all the annual expenses for property taxes, hazard insurance, cleaning, maintenance and upkeep, repairs, property management, legal fees, advertising, mailing, postage, HOA fees, etc. is your annual cash flow. 

And, in the end, sell them.I take care of property management, finding tenants, signing contracts with them, maintenance, repairs, etc.We split everything 50/50, ownership, mortgage, expenses, net cash flow, amortization, capital gains, ...Now there are three points specifically that cause me some headache.