Several elementary schools, high schools and retail centers nearby. 3 Post-secondary schools in the area as well.Conservative Cash Flow (10% Vacancy): $86 / mthLess Conservative Cash Flow (6% Vacancy):  $170 / mthCoC Return: 55%Purchase Price: $199000Down Payment (20%): $39800Mortgage (3.0%, 25 year): $159200 = $753 / mthClosing Costs: $4000Land Transfer Tax: $1715Total Cash Required: $45515Rooms: 3Rent: $700Rental Income: $2100Mortgage Payment: $753Property Tax (1.18%): $196Insurance (Very Conservative): $150Repairs (10%): $210CapEx (10%): $210Vacancy (10%): $210Management Fees (10%): $210Utilities: $75 (Tenants pay portion)Total Expenses: $1930 / mthCash Flow: Income - Expenses: $2100 - $2014 = $86CoC Return:  Annual Income - Cash Required: $25200 / $45515 = 55%NOI: Gross Income - Operating Expenses (excluding Mtg): $2100 - $1177: $923

One I like is using it to buy properties in a STR market where the gross income is usually double or triple the P&I payments.Hope this gives you some insights Best wishes and good luck!

Gross rent is $4200.00 a month and total expenses including PM is around $3,450.00 a month.

Thats a bit of a broad question because there are a few diff calculations involved but...Spread sheetstake the purchase price write it downtake the repair costs...write it downgross rental income after its repaired...write it downholding costs...write em down ARV write it downConsider how much its going to cost you to buy, fix, and hold...cross reference that to how much you want to pull out in a mortgage afterwards. consider what interest rate you're going to pay.example purchase price - 100krepairs - 50k holding costs (3 mo) - 2k gross rents after repair -1800ARV - 225k say you pull out 70% of the Arv your getting $157.5k so basically cost you next to nothing to docalculate your monthly mortgage payment, all expenses and operating cost say that comes to 1400. try to reverse engineer it, practice on properties you find on the market that need work. get familiar with these types of calculations 

Well, we disagree - When I present an offer:1) It is NEVER a gross commission (I keep anything I can get over asking) AND2) I represent the buyer as the principal at closing AND3) The buyer may assign his interest only to an entity controlled by the buyer AND4) I don't need some kind of BS dual escrow at close to hide the actual buyer and what price he's paying.I'm not crazy about a lot of RE agent ethics, but be honest.

To net $10,000, you've got to gross $14,000-15,000.

Expenses are limited to gross income and expenses cannot create a loss, the excess is suspended and carried over, except those expressly allowable under a different section of the code (i.e. mortgage interest and property taxes).  

Either they break the lease, owe us for utilities or back rent, leave the place gross.

Is that an apples to apples comparison or a gross?

.$165 gross rent is extremely low.