If you have $1,000,000 leveraged in real estate and you pay a 4% rate that equates to approximately $111 dollars a day in interest. 

Here are the factors to the equation.1.

How do you use vacancy in your equation for writing an offer? 

I would lock in a FIXED rate now, if you can.Obviously, whatever money you pull out and spend on living expenses is money you cannot put to work and invest in real assets.So, using the equation Assets x Return = Lifestyle, you should consider if paying for living expenses now is worth delaying financial independence in the future.Wishing you all the best in your future endeavors.Ken

Obviously we can change it to whatever price we like but I am curious if other commercial land lords use some sort of "Cost of Living" equation.

Also, how can this be financed since house hacking is out of the equation?

I would consider this scenario into your equation.

This equates to $700,000 in spending power at 20% down.

Buying the property correct is important and I just add my management fees into the equation and make buying decisions with that in mind.The other thought that I had was that I've learned a lot of management lessons by watching my property management deal with stuff that I would have had to if it were mine alone.  

Yeah, since I haven't worked with contractors locally,  I am doing educated guesses on the rehab part of the equation.