That's how powerful the inflation/growth formula is. 

I meant it only intellectually rubs me the wrong way.At times, hanging out on BP (and with REI folks in general) has a bit of a cult-like feeling pushing a magic formula. 

I mentioned to John that I'm taking a 3-day course called the Flipping Formula this weekend.  

Even if you don't get a non-recourse, a value-add property can be re-financed based on raised rents in a short time frame.There is a formula for increasing the value of your property because the value is based on income, not comps. 

Flip2freedom episode 77[http://www.flip2freedom.com/a-3-step-formula-to-a-successful-balanced-and-insanely-profitable-2012/] - podcast - LISTEN TO THIS TODAY!

Flip2freedom episode 77[http://www.flip2freedom.com/a-3-step-formula-to-a-successful-balanced-and-insanely-profitable-2012/] - podcast - LISTEN TO THIS TODAY!

If not, I would recommend Formula Exterminators, Inc. 1251 E Kemper Rd, Cincinnati, OH 45246 

I understand you calculate a percentage of vacancy in the buy-side formula but that doesn't seem to account for an absolute true vacancy for a month.Bottom line - I seem to understand the general "rule of thumbs" when it comes to cash-flowing the house and making sure you buy it right so that you can accomplish that.  

Not sure what the right formula is, but since downtime is essentially vacancy, it seems you would be double dipping to add the 5% vacancy.

@Bryan OttesonPassive income from rents does not qualify for 401k contributions, and changing that passive income to earned income subject to self-employment taxes is not generally a good formula.