It's actually quite simple when you break it down and you definitely want to understand every bit of this calculation before you start plugging numbers into any online calculator. 

I've decided to take a break from acquiring property (At least I say that.

Thanks for the break down and advice!

That will be the difference between break even (or lose money) and cash flow.I think the real sticking point is going to be the return on the $70k.

 " Feeling safe" is not a legitimate reason to break a lease .

Then you would still have a steady paycheck to finance more deals and you would get a break from the road.

Hi @Graham Lucas,I'm currently working with investors from New York breaking into the Philly market. 

@John Sherwood if you want to be really scientific, then break down every component of the building into its useful life.

Here's a high-level look at some of the preliminary numbers:Offer price: $53,500Purchase closing costs: $1,200Rehab estimate: $25,000Estimated holding costs: $2,000ARV: $105,000-110,000Target 75% cash-out amount: $79,000 - $82,500As you can see, the numbers looked pretty good up front and it looked like we would be pretty close to breaking even on the project after the cash-out refi, so we went ahead with the purchase.

Break out all of those costs.