Wholesaling formula is 70% of after repair value minus repairs minus your feeYou might consider doing a joint venture with the seller where you buy subject to the existing financing, use private money for the repairs, give them a note for their equity after you subtract real estate commissions and closing costs repairs and your fee of 10,000

Call this EAP (Earnings after Payments)To dig a little deeper, I'll also subtract the cash I tied up ($150K is about $30K + any rehab or closing costs at time of purchase) and apply a "cost of cash" (what is my opportunity cost of that investment in a fairly safe instrument), along with any EAP (can be positive or negative) and an estimate for my annual equity build (by estimating this from an amortization table).To clarify:Annual Benefit = Annual Equity Build + / - EAP - Cost of CashNote:  This is not accurate / scientific / mathematically rigorous, and I'm not recommending it as a way to calculate returns.  

The seller would have to be crazy to do thatINSTEADOffer a joint venture with the seller where you bring private lender money in for the 10,000Give a note with no payments for four months to seller on the JVCalculate 10% for Sales Costs or 15,000Earn 10,000 for the freeSo subtract across from the 150 ARV-10,000-15,000-10,000 = 115k net to sellerThat helps the seller and helps you to make more moneyDon't be a one trick ponyBe a transaction engineer

Any taxes, if due, would be on your total investment, purchase and rehab, subtracted from net sales proceeds.

. $110k in equity copmbined or $55k eachThat NOI is subtracting the mortgage payments.

A local bank I have a relationship with underwrites annual operating expenses for small Multifamily 2-4 unit non owner occupied at 30% of net rents, for example:Gross Rents = $48,000 Subtract 10% Vacancy from Gross Rents = -$4,800 Net Rents = $43,200Subtract 30% OpEx from Net Rents = -$12,960NOI = $30,240What percentage do you factor when underwriting OpEx for small and large multifamily in your market? 

If that leaves you $139K you can subtract the $5K that the seller needs and that leaves $134K.

approach, he starts st ARV and subtracts holding costs, his desired profit and the est repair costs.

They can be applied in any year you are eligible and carried over in years you are not.At final sale, the carryover losses are subtracted from the gain on sale.

(note: Subtract three 0's from the KRW for a back of the envelope approximation of the dollar value)A property is only valuable to a real estate investor if it’s selling at the right price.