id=8472)Fast forward to now... my insurance has said there is $3k in damage, when I received 2 bids from contractors, both at $22k.

Purchase Price - $70k-85kCash Flow Per Room - $375Property Tax - ~$700 & Insurance ~$500NOI (50% rule) - $750ORNOI: $1500- $105(7%vacancy) - $120(8% PM) - $150(10% repairs) - $58(Taxes) - $42(Insurance) - $250(utilities) = $775Estimated ARV(current w/ ~$4k of work) - $85kEstimated ARV(w/ ~20k of work) - $115k--Will most likely wait to do this until later on since it will only be college students renting Mortgage 30yr & 5% rate(5% Down) - $485/mo(includes PMI)@Andrew Whitacre @Salvator Migliore

You take the gross income  and subtract out all of the operating costs and expenses (taxes, insurance, gas, electric, water, trash, lawn, snow, maintenance, CapEx reserves, management, etc).

I have included in my expenses vacancy (5%), CapEx (10%), P&I and taxes, repairs (5%), insurance (5%) TOTAL EXPENSES = $1,687.15. 

Insurance cost?

E and O insurance, 5.

Insurance costs are not notably higher.

Make sure you list the lender as such on the insurance policy so in the event of a fire or other disaster they get their money first.  

Insurance, 3.

@Tchaka Owen It's advisable that a taxpayer carry adequate and appropriate insurance for the business line.