Air conditioners are harder because some parts may have been replaced, but using the manufacture date is usually a good starting point.Calculate the remaining useful life by subtracting years in service from the useful life:Calculate monthly provisions as follows:AC compressor: $2,500 ÷ 16 years ÷ 12 months ≈ $14/monthWater heater: $1,500 ÷ 3 years ÷ 12 months ≈ $42/monthTotal monthly provision: about $56You may have more high cost items, like roof replacement.Base MaintenanceIn addition to major components, you should plan for routine repairs—things like dripping faucets, slow drains, or minor fixes.Across the properties we manage, the five-year average for these base-level repairs is about $400 per year.

I would talk to a lawyer first because the terms of the eviction could vary wildly depending on circumstances.For example, if the current owners have cashed any of the current tenants rent checks during the eviction period that can effectively turn the clock back to zero on the timeline.If the tenant is disabled or a senior, that can make it extra challenging, especially if the building is not free market (ie rent stabilized).Remember: It’s not just lost rent, you may need to tap a lawyer to help with the eviction proceedings if the tenant takes you to court and those fees are often more than the lost rent.Once you have an idea of the complexity of this, I’d suggest just counter-offering to the seller based on subtracting a conservative estimate of the cost of this process and be prepared to handle it yourself rather than trying to extract a judgement of some kind from the seller down the road.  

What matters is whatever number you have after subtracting from your rent all expenses, including depreciation ("net income").

If one unit is vacant and I live there (owner-occupied), show the new breakdown subtracting that unit’s rent.4.

But then you have to subtract at least the following:1.

Subtract those too. 

Main things needed for turnover are usually paint, sheetrock patch up, broken doors, appliances a bunch of small things that add up (unless you had a tenant living there for many years etc...) which is fine because our lease anything beyond normal wear and tear is subtracted from deposit. 

They ask you to use buildium to look at everything, but buildium doesn’t give you an easy to follow way to see subtractions from repairs or marketing fees that they charge.

It also adds in your loans principle amortization ammounts each year and subtracts closing costs on sale to show you your total return. 

Subtract your taxable income from the top income in your current bracket.