You need to calculate your "event horizon" meaning how many years you will hold the property.The 50% expense many use comes from over time when an asset is newly built or recently rehabbed with everything replaced that cost will be low.

I haven't had the place inspected yet or anything but here are my calculations, please let me know if it looks good or not worth it.Purchase Price120,000.00Down Payment12,000.00Rehab Cost5,000.00 (estimating this just in case)All In Total17,000.00Rent1,400.00Tax166.00Insurance100.00Management140.00Vacancy 7%98.00Repair 5%70.00Mortgage550.00HOA0.00PMI50.00Water40.00Total Expenses1,214.00Cash Flow186.00Cash on Cash13.13%

As an investor event's like this make me stay away from investing within 5 miles.I have decided to open up my search range within an hour out of the city such as Yonkers, Northern NJ, and even a little further.Also as a primer on calculating ARV to compare two properties use this file http://www.biggerpockets.com/files/user/JasonScott/file/estimating-arv by @J Scott

These are the top deal analyses that I have from the past few days after I started calculating specifics.

The gross operating income (per the owner) was $84,060, @ a 50% expense ratio I calculate a NOI of $42,030.  

Who has used the updated House Flipping Calculator?

Learn as much as you can and pay close attention to calculating expenses.

In my calculation above i included the mortgage in the costs of the multi but not in the costs of the singles.

still have not loaded up a pic  but I found a real estate calculator and downloaded it quick!

Does anyone know if the rental property calculator on BP accounts for PMI?