Gross Rental Income (Total Monthly x 12) $265,632.00 Subtract Vacancy Rate (15%) $39,844.80 Net Rental Income $225,787.20 Other Income (Laundry) $5,021.00 Total Gross Income $230,808.20 Total Annual Operating Expenses $178,911.00 Net Operating Income (NOI) $51,897.20 You probably already see a problem with the asking price based on the NOI.

You would capitalize the correct NOI and then do a below the line adjustment where you subtract the costs from the capitalized value.Hope that is clear.

Subtract the $587 from the remaining $1100 per month and you have a monthly profit of $513. 

a nanosecond.As I see it, here are the numbers:$37,000       Cash to buy$20,000       Cash for rehab$57,000       Total Cash in$125,000     ARV$57,000/$125,000   =  45.6% ARV....if you can't find a lender for this ratio to do a COR, then you must be in some foreign country.70-75% ARV     typical ARV used for COR$87,500             70% ARV (of $125,000)(57,000)             Total Cash in$30,000             Cash Out$87,500/$57,000   =  154% CCRAs long as the new loan payment, when subtracted from your current cash flow, doesn't put you into a bad cash flow (as in negative), then grab it and move forward.  

With a few limited add-ins/subtractions for additional features like garage/deck...though, added nothing for my solar panels (whatever!). 

You subtract your cut and then repairs from that.

In the end, military service members looking for housing will start with using BAH as a guide and then add or subtract with dual income or looking to save money for utilities/bills.  

Because if you take the rule above about how much you can borrow total, you now have to subtract your highest balance in the past 12 months from that amount.So if you were actually able to take out $50k and borrowed $30k but have now gotten a windfall 6mo later and paid that $30k off but wanted to take another loan against the 401k at the 9mo mark, the max you could take would be:  $50k - $30k (highest balance in the last 12 mo period) = $20k.

But if your property has a high-end kitchen and the other one doesn't, an appraiser might add $10k back and value yours at $110k.You might try to get your hands on a few appraisals to learn how appraisers value a property and add/subtract value based on features, square footage, and fixtures/finish.While I'm sure this varies wildly, I've found that some realtors rely too heavily on automated comps or CMAs when valuing properties, and these can be off by a wide margin.

If a house is worth $200k at retail, and it needs $10k in repairs, you subtract the repair cost from the value of the property, not add it to the value.I posted a version of the below info elsewhere.