The 70% that rehabbers use includes repairs, so to market to flippers this must be subtracted out.

If you take 75% of all your rents and subtract PITI and add this to your other income you should be in the ballpark.

Either way I am subtracting $5000 from my price to figure my profits.Don

Then subtract out debt service and what you have left is either positive or negative cash flow.

All your expenses accumulate to form the basis cost of the inventory you purchased to flip, and the basis is subtracted from the sales price whenever the inventory is sold to get the gross profit.

Either way, I'll subtract the bill for cleaning the carpet from their deposit.

Be aware of such things that add value or subtract to include location, location location sqft,size of lot,garage,basement, # of bedrooms,age,age of construction,type of construction, vacancy and rent roll, expenses, taxes,ect.

Yes i agree with separation of electric utilities, but when I buy multi units without separated utilities i subtract the cost of separation off the price.

Rents around $500 are where that rule seems to work reasonably well, so at $600 - close enough.total monthly gross rents / 2% = 50 times rents => 50 x 2400 = 120Kfrom that, subtract repairs: 120K - 50K = 70KMax offer would be 70K, so start lower.Lots of other analysis formulas that could be used - the point is to try to get a number you'll be comfortable with paying so that you are almost guaranteed to be profitable (can only be profitable if good paying tenants are placed in the units).

In some places unimproved la d would be worth less so some start with that as their land portion and subtract it from your total purchase price plus rehab-Steven