Although being highly leveraged can mathematically work out well, being too highly leveraged is a huge risk.

@Todd HajecThe simple mathematical answer is pay off the high interest credit card debt first.  

The likelihood that you could buy out the investors from refinance proceeds alone isn’t likely to work mathematically unless you inject a lot of your own capital.

Mathematically, it seems to be six months of interest, but . . . someone is afraid that they are ONLY getting $250K from a default rather than $259K?

It's not just the mathematical side but it's the way of thinking.

Well, given the prevailing cap rate of 5% your property is now actually worth mathematically $700,000.

Keeping that $57,750 in your pocket is mathematically nearly identical (less any applicable tax advantages, among other things) to taking out a second mortgage for $57,750 at 9.37% after putting 20% down.Are you really going to put that $57,750 to work elsewhere earning you better than 9.37%? 

Financial Accounting, Managerial Accounting, Legal Environment of Business, and Liberal Mathematics.

I read Rich Dad Poor Dad in fall 2009, did my own mathematical proofs which all pointed to real estate, then just started researching and learning and bought my first property in June 2010.  

One of the arguments I've heard is that, mathematically, the formula just doesn't make sense once you get past a certain level of ARV because rehab costs don't have a linear relationship to ARV.