(Subtract that from sales price to get loan balance.) • How much are the monthly payment on the mortgage?

You subtract or add to the home that you are looking to give you an idea of the appraised value.Now as for the price you actually pay depends on how much repairs and negotiation you do. 

You subtract the land value from the purchase price, then you divide that by 27.5.

Subtract your repairs, and you are left with $391,500.

Are the expenses (potential cleaning, bills, service calls, etc.) simply subtracted from the collected rent?

I rented that property and the cash flow from that property (the actual cash you got to keep), was $250/month (this includes subtracting the loan pmt)...or $3,000/year, the formula would look like this:Cash out ($3,000) = Cash on Cash Return (.05) = 5%Cash in ($60,000)For example #3:If I paid cash for downpayment only of $20,000 for a property, and the rest ($80,000) was from a loan.

. :)In the US, in either case of Actual Cash Value (ACV) coverage or Replacement Cost (RC) coverage, depreciation is always subtracted from the initial settlement.

. $495 x 6 x 12 = $35,640 gross income. subtract 5% vacancy and your effective income is $33,858.

Rent - 10% Management 10% maintenance 10% vacancy - all hard costs paid by Landlord=notI take whatever I want for monthly profits a $75 a month and subtract that out per door and take the rest of it and determine what it can afford six and a half percent 20 year amortization loan. 

As far as the lease, use what you like and add or subtract whatever you don't but still make it yours to fit your management processes/systems etc..