- TOTAL OPERATING EXPENSES: $522K, NOI: $445K, Debt Service: $240K, CASH FLOW: $200/door/month.So...this is based on potential rents which means I will have a year or two of transition and potential CAPEX expenses.  

Fast forward a couple months now the work has slowed down dramatically .the main problem now is this last $33,000 draw he hasn’t hardly came at all in the last several weeks virtually non existent other than a couple guys for an hour or two and it’s really starting to get where I’m worried .the Bank approved it each time when there clearly wasn’t enough that could’ve been done on the contract i got one draw left ( I won’t sign yet obviously) I only have about 10 grand left of draw and so now I’m kind of worried because the project can’t be finished on the ten grand that’s left .

Obviously, the biggest single cash flow item is the sale of the property after "x' years, so it's a very important assumption. 

With a quad-plex you'd only need to pay once to an attorney, replace one roof, and/or have one closing (less closing fees in total!).

So total ALL your monthly cost and pro-rated costs.Divide by the number of months you think they will stay.

This is an obvious Subject To or Wrap.

We aren't looking to buy a total dump, just a home that needs to be updated and fixed up.

The trust beneficiaries might be totally different than heirs in a Will...Either the investor is an attempted skimmer but is inept which is good I guess, or the owner got wise to what the heirs were doing (and the investor is the victim) so the best way to protect the property was put into in a trust.  

I totally agree @Bryan Devitt .. definitely not paying sticker price.

Hi Eric,If you are talking about your personal tax liability (at the federal level), the formula I use is: NOI-Total Debt Service= Cash Flow; Cash Flow+Principal Payments Added Back (on debt service)-Depreciation=Taxable Income/Loss.