The profit calculations would be your adjusted cost basis (purchase price, plus capital improvements, minus depreciation), subtracted from the net sale of the property (sales price minus closing costs and commissions), like others mentioned above.

It also adds in your loans principle amortization ammounts each year and subtracts closing costs on sale to show you your total return. 

Before you buy a property, figure out what it would sell for 6 months from now, all fixed up, subtract cost of sales, taxes, carrying costs, time, concessions, contractors who don't show and so on.

Or would have been if you were single.DepreciationReal estate investors get to subtract an additional deduction: depreciation of their properties.

Subtract the fix up costs from the sold prices and that's about where you price it. 

The new loan will subtract against the cash flow.

Then subtract your existing debt.3.

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.

Start by learning the flip math on paper, not YouTube: find three recent sales, back into ARV, subtract buy, rehab, holds, and sell costs to see your true margin.

Mortgage Delinquency vs US is the difference between the percent of homes that are 30 to 90 days delinquent on mortgage subtracted from the percent of homes in delinquency nationwide...