Calculating your expenses and profit

[Calvin N.]

I am working the numbers for a rehab and am curious what others figure in their numbers. The basic numbers I see are usually:

Purchase Price- price you pay for the property
Selling Price - amount you will sell the property for (not necessarily what you will list it for)
Holding Costs- monthly payments, insurance, utilities, points paid upfront
RE Agent Commission - agent's commission on the sale of the property (commission on the purchase of the property is considered paid by the seller)
Rehab costs - total expenses used in rehabbing the property from lawn, paint, permits, property inspection, contractors, supplies, etc.
Profit - the amount you must make to take the deal

If you take the selling price and first subtract the purchase price, then subtract the expenses (holding costs, agent commission, rehab) you should have your Profit amount. If the numbers don't work you don't take the deal.

What other ways do you calculate your deals? What other expenses do you include in each category? Thanks! :idea: