Hayden you need to add your closing costs, taxes, utility payments etc. into your calculation if you are doing a honest evaluation.

The assumptions I made are below:Closing costs are calculated to be 7% of final ARV purchase priceRehab costs are $100/sq ft and $75/sq ftLoan interest is the loan + 10% back to the private money investor (assuming I go that route)Total cost is the MPP + Closing Costs + Rehab CostsTotal Profit is ARV – Total CostOwner receives the MPP (what I would have paid for the house) + Closing Costs (I would have had to pay for these anyway, I could sweeten the deal for myself and offer to split them with the current owner) + Half the profitPrivate Money lender receives their initial loan plus 10% interestI receive the split profit – interest on the rehab loanMy goal was to get the owner as close to their $200k wish in order to convince them to do this less than traditional (and maybe not even possible) way.

View report*This link comes directly from our calculators, based on information input by the member who posted.Hi Guys I am geting practice analyzing deals.

Nonetheless, my advice to a beginner is to make or acquire yourself a spreadsheet / calculator so you can "accurately" determine whether a property is going to cash flow for you each month.

My past life was a fight pilot, we took risk everyday, but it was always a calculated risk.  

Honestly I was worried about this but now being a lender I realize we compete for your business so you just have to shop around to find someone who can make it work for you, just worry about estimating 25% of gross rent goes to expenses outside of PITI and you will be similar to what traditional lenders calculate.

When I bought my very first investment, I knew absolutely nothing about how to calculate cash flow.

Mortgage you can run a calculator based on purchase price.From there, it is all assumptions and/or the condition of the property.  

I hadn't thought about that.It would affect their LTV calculation at least—they'd only be able to account for income of two units.

You can also use the Fix-n-Flip calculators on BP to help in your outcome.