Then take the expenses out (I like to use 40-45% for back of the napkin purposes) and you will be left with your NOI. 

Anyways, it is a simple and quick back of the napkin calculation to see if a rehabber is in the ballpark of a deal or not.

If the sanitary conditions in your unit are such that it attracts pests of any kind, and it becomes necessary for us to undergo remediation in the building, you will be held financially responsible for reasonable costs thereof, paid as additional rent.

Have thought of this myself and one of my partners even has plans already made up for build-outs of storage containers.I havent looked into the costs for water/sewage Hookup as that was my biggest question as well.I see what we (the REIT I work for) pays for these hookups for our potential shopping centers and it is rather large amounts (I know it’s not apples to apples comparison)I never found land that was going to make a good deal when I was looking in high desirable locations however to do much more than back of the napkin analysis.

So long as the buy price accounts for this work or your ARV and cashflow analysis support the overall rehab with the foundation work, you'll come out ahead every time.That said, if you come across a slab on grade home that has greater than 6" of deflection from one side of the house to the other you absolutely need to call a plumber to TV the sanitary mainline to make sure it hasn't been compromised.

I owned a few 1% rule properties in TX when I first started many years ago and none of them produced significant long term cash flow.Meeting the 1% rule does NOT guarantee a good deal or cash flow, in fact, it’s not a rule at all, just a simple back of the napkin calculation which is more of a guideline than a rule and the name should be changed accordingly.Congrats on getting into the deal and pushing forward, that places you ahead of most who talk about it but never do it.

I typically do a quick back of the napkin calculation without using a spreadsheet to give me an idea if it warrants a deep dive.That being said this is a great resource for deeper financial analysis and pro forma templates https://www.adventuresincre.co... 

Ceramic tile is great- it’s sanitary, durable and very easy to clean but takes skill to install and is generally more Labor intensive or takes more time.

You also have TI's and turnover that differ from MF.I have a simple, back of the napkin spreadsheet I use. 

@Alex Camaerei I use two things with my clients (I 100% focus on investors buying rentals)1) A very simple, high level overview of what they need - back of the napkin math2) The software that @Jassen Bowman mentioned.