Net income means income after subtracting deductions.

@Danny MuroHey Danny — owning a property free and clear puts you in a great position to scale.When analyzing rentals, I usually start with projected rent, then subtract estimated expenses like taxes, insurance, maintenance, management, and financing (if you use leverage).

If I lend 30K for 12 months at 12% I only walk out with $1600 if I subtract the attorney fee alone + any other related fees.  

I do not say this to be mean, but I do not have confidence that the primary will “cash flow right away”    Take the rent multiply by .6 the subtract P&i    This reflects a 40% expense ratio.  

Just list your monthly income, subtract all expenses (including debt payments), and make sure every dollar has a job.

If you subtract the value of homes without an ADU from the value with an ADU you obtain an average valuation of ADUs for your city.

Unless landlord wants to pay all utilities (you don’t) utility allowances are subtracted from FMR.

If you subtract the value of homes without an ADU from the value with an ADU you obtain an average valuation of ADUs for your city.

You subtract all your business expenses (marketing, technology, driving, CPA etc) - and you get "net profit" which is what is being taxed.As my colleague pointed out, it's not capital gains technically, it is taxed basically the same as your fire dept job.

I'd say a good rule of thumb is to subtract 5-25k from your subject property depending on the class of the neighborhood (higher adjustment in higher class neighborhoods).