Here's a reference: https://www.nolo.com/legal-enc...You can use any reasonable method for dividing these expenses.

Let's say $3,600k is what will be needed (just a guess here for easy math) Divide 3,600k by 180 months. $20 a month is what is needed.  

As I read forums on BP it seems there is a divide between cash flow and appreciation.

Net Profit divided by purchase priceso you make 100k a year net off of a property you bought for 1m, your cap rate is 10%

It appears they calculate gross ROI based on gross income divided by property price.

I would save it all until I could sleep at night knowing I have enough money in the bank to cover the worst case scenario.According to a common "formula" used on BP (50%), you would divide the 1,400 in half to get your expected non-financing expenses (everything but P&I).

On your posted numbers, rehab plus acquisition of $109k divided by the exit of $163k is a 68% deal which should be a go.In J's numbers, he was high on several items as he eluded to, taxes for example would not be more than $900 for. 6 months.

CAP Rate is not just a bogus number -- I am aCommercial Mortgage Broker-- Lenders and Appraisors always like to use cap rate number --When I do Loan Package -- I estimate the Value of Property based on CAP rate --which is based on NOI -- In this case --NOI = Net Operating Income is before EBITDA -- Earnings BeforeIncome Tax, Depreciation and Amortization --It does not inckude any mortgage payments --The Value of the Property is NOI divided by Cap rate -- For example--an NOI of $200,000has a value of $2.0 million at 10% cap rate...I have closed several loans and never had any one questioned my values.

In the multi-family I own, two furnaces heat four apartments, so there is no way for me to divide the heating bill amongst the tenants.

Built a divided fence in the back yard and removed some trees.