When you're forecasting cash flows for your investors, yes, you'll want to subtract your management fee from the property's cash flow.

After all expenses are subtracted, what's it the minimum cash flow you shoot for on a single family home?

Even though it is better than that in reality when you add the subtracted $200/month for repairs/CAPEX/etc...

The reality is if the mortgage is the same as the rent, owning is costing about 35% more than renting in terms of monthly cash flow (the 50% rule subtracting PM fees (10%) and vacancies (5%)). 

Don't forget, you subtract out every expense that the rental costs you, and you subtract out the depreciation on the building.

With a portfolio value of approximately ~$715,000 subtract fees (5% commissions + 1.5% closing/exchange costs + 1.5% excise tax) minus your loan amount provides approximately $500,000 cash available to reinvest.The next PROSPECTIVE PROPERTY ACQUISITION COMPARISON CHART shows apartment complexes in varying market types and the projected year 1 returns to serve as illustrations using actual opportunities available today in the market place.

All you need is:- a way to fund your deals (a source of income, a partner)- the ability to do addition, multiplication, and subtraction- a lot of persistence- some creativityIf you got those(here’s a hint I know you do, you know how to use the internet well enough to be here) then you are fine!

Then you need to subtract you profit/fee to find your Offer Price.

And when you did your calculations in the BP calculator, I KNOW for a fact it gives you a category called "50% Rule Cash Flow Estimates" -- taking your income, and subtracting 50% for expenses and your PITI.

The big guys expect bigger volumes, and have higher costs subtracted from your commissions. many smaller ones negotiate - or only have a small fee per month to keep your license active with them.