Hi everyone,I have been using the ARV calculator at REIkit.com to calculate ARV on potential deals.My question is anyone familiar with the tool and how reliable are the numbers generated?

Now if I am able to reduce the expenses to say 50%, by replacing resident management and staff with external property management, the property will cash flow nicely.However here lies the rub: in order to maintain the Section 8 subsidies there is apparently a budget which gets submitted to the Dept. of Housing and Urban Development (HUD), which accounts for all these expenses in their calculation of the Section 8 subsidies.

Your best bet is to hire a buyer's agent and he will walk you through what's needed in your state.

So for example if you would pay $1,000 per month to rent a similar unit but after you collect rent and pay expenses you are only on the hook for $500 of mortgage payment you would treat that $500 difference as a return and calculate your other metrics from there.

Disclaimer: I'm not a data scientist and these calculations are only representative of my own opinions, take them with a fair amount of salt. 

My first one has an estimated profit of $25-27k ( which was determined using the BP calculator).

It is also important to note that there are at least three different ways to calculate the spread of the deductions over the first five years, which allows you to customize the accelerated depreciation deductions to custom fit your tax needs, and maximize your benefits.However, if you do not take advantage of bonus depreciation upon the first year of filing tax returns, you will lose the opportunity.

I think the the right way is to do your calculations using $1200 per unit.

This unit in Butler Tarkington area of Indianapolis seems to fit the bill (though that square footage seems unbelievably high... are they including the unfinished basement in the calculation?)

However, try calculating that new payment (I would put in higher interest rate than right now in case rates climb and also be sure to shop insurance rates and taxes into that payment and then make sure you’re still cash flowing.....