Real estate business planning

[Brandon Turner]

Wonder if any of ya'll have come up with a type of formula for handling the debt compared to how much cash you have on hand. Like I'm sure someone has done this before but I was thinking along the lines of bank balance/debt service. So if you had $30000 in the bank and $90,000 in mortgages you would be at 33%.  If your debt was higher the percentage would get lower meaning more risk.  So has anybody used anything like that and using the above formula what would be some percentages you would have and are you currently comfortable with it.?