Pps  you do get to subtract the selling costs (in you example maybe $30k in commissions and closing costs) from your taxable profit.

You can also pay for comps by using Real Quest.Then, you subtract from the ARV 35% right off the top.

So, let's say your house would appraise at $150k, the bank would give you up to $120k (80% of the value) - but you would have to subtract out the mortgage you still owe which would need to get repaid.

@Eric Smith To answer your original question: either stipulate it's empty and rehabbed when you close (seller won't like that) or figure out what it would cost you to do the eviction and rehab, then subtract it from your offer.

You MAY get 1%/m gross in a multi that you also want to live in - not forgetting to subtract the percentage that you miss out on because of your occupier status - meaning that it'll be a fight to find something that'll cost you less per month than if you rented there - but I have confidence that you have the right attitude and foreknowledge to succeed.

I then subtract an assumed $20K for repairs (paint, carpet, seller's lies about repair costs, landscaping, etc.).  

Can I subtract it from secuity deposit?

Those property's NOI would sell for the same cap rate and a cost to cure adjustment would be subtracted below the line.Finally CAP RATE IS OF ABSOLUTELY NO USE AT ALL FOR SFR'S AND SMALL MULTI'S! 

I look at it this way: If you subtract the mortgage payment from the rents and the difference is less than you are paying for your own rent, it is worth it.  

I typically subtract 3%, of the ARV.Realtor Fees: What is the commission you are willing to pay your listing agent (unless you are the listing agent) and the buyer's agent.