It is:Gross rents x 50% = Cash Flow before debt service (the 50% includes taxes, insurance, property management, utilities paid for by owner, maintenance, vacancies, etc).Once you have that number, subtract your debt service payment (principal and interest), and you will have the cash flow.Without the actual rents or your loan details, it's hard to provide an accurate example.

Do your best, and try to get an opinion from some local contractors if you can.Then subtract the Repair Costs from the ARV, and take 70% of that final number.

Subtract your P&I.

Then subtract debt payment and that equals your cash flow.

I asked if you got your cash flow by taking gross rents and subtracting PITI (principal, interest, taxes and insurance).

Subtract from that number the cost to build, including soft costs.

Assuming the 107/mo cashflow above is correct--don't you need to subtract the pm you would make on a buyout to get an accurate difference between the two?

I am new to this but if the ARV is 200,000 the 70% of that is 140,000 then you subtract the rehab which is 40,000.

Then you subtract the conservative repair costs.

Which is listing your monthly income then subtracting necessities(food, shelter, clothing) and then going from there.