If you were a company and this was an expansion project, you would take the additional future income of the project and convert it into a present value by discounting the future cash flows with a risk-appropriate discount rate (which should be your average equity returns).I did that and to simplify things, I assumed your equity returns are 10% and you will get the additional rent and savings on gas (I assumed $100 per month) for eternity.Your annual incremental cash flow is $22,800; (monthly: $1800 in additional rent + $100 in savings).Turning that into a present value, you divide the annual amount by the discount rate.

Divide A by PV and you have your rate or yield from this investment.The tricky part (where the garbage in-garbage out principal comes into play) is figuring out what your cash-flows will be in the future - they will change, hopefully in a positive manner.

You'll pay two kinds: the upfront MI, which is 1.75% of the loan amount, and the annual kind, which is 1.35% (though soon to be lowered by FHA) of the loan amount, divided by twelve, and added to your payment for the life of the loan.  

If you divide the marginal additional income by the hourly time spent, it comes to many hundreds of dollars an hour.

Using this proforma NOI you can now divide it by your Market Cap rate (NOI/CR = Value) to come up with your After Repair Value (ARV). 

Call a local commercial lender or ask another investor what the cap rate for the area is, and then divide cash flow (NOI-debt service, annual) by purchase price to come up with the cap rate.

You would need a very small grouping of houses, with some clear definition/divide from surrounding blighted areas, and some sort of draw.  

Look at your annual income from that activity and divide by the number of hours you work on real estate in a year.  

.…$5,350.00Remove Existing Master Bedroom Closet Wall.Remove framing and drywall of existing closet dividing wall.

A common structure is to give equity investors a preferred return on the project's cash flows, with the balance divided between LP and GP and then a split of the profits after investors then the sponsor's investments are returned upon disposition or refinance.The preference (or pref) is the investor's first claim on the cash flow (NOI less debt service), usually stated as a percent of their investment for instance 7-1/2%.