The basic numbers I see are usually:Purchase Price- price you pay for the propertySelling Price - amount you will sell the property for (not necessarily what you will list it for)Holding Costs- monthly payments, insurance, utilities, points paid upfrontRE 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 dealIf 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.

Subtract from that any holding costs over those two months, if you have not already.

Take the gross income (rents, laundry, etc.) for the property and subtract ALL expenses (mortgage, taxes, insurance, utilities, maintenance, vacancy, management, etc.).

So we can subtract $40,000 from the $450,000 yielding $410,000.

I am not an accountant, nor do I play one on the internet.NOI (net operating income) is determined by subtracting the operating expenses from the gross rents.

Take that rent and subtract ALL of your expenses (mortgage, property taxes, insurance, maintenance, vacancy, utilities, advertising, etc.).

For those of you who don't remember that from school, don't worry, the point is if you don't follow the 70% of ARV and then subtract repairs, you will start coming up with different numbers.

Whatever needs to be done, subtract it from the deposit.

I don't know about Amarillo's numbers, but I bet we have a net loss when you add up babies and subtract deaths.

IF you believe that, try doing nothing and see how much money pours in.Many other gurus teach that cash flow is determined by subtracting taxes, insurance, management, maintenance and vacancy allowance from gross rents.