Joe, you need to learn what is ROE and how it is calculated, cap rates and where they come from, estimating capital expenses, square footage revenue and comparisons, the best structures for a NNN, and many others.  

Instead of using the calculator to determine the end result (ie, that the ROE or cap-rate is say 7.5%), start with the end in mind.

If market rent is only $1600, then that will hurt your DTI by $300 (75% of $1600=$1200), you can still keep it as a rental, you just won’t qualify for as much on house #2.Calculating your Return on Equity (ROE)Say you paid $250k for a property and the PITI (including HOA) is $1500, current value is $330k and you owe $230k, so you have $100k in equity.

-K Even with higher interest rates, you are potentially missing out on returns by not financing and maximizing your ROE - best practice would be to model it all out side by side with the different scenarios **total cash flow** 

I had another one were no one bid except for a local guy from Romania since it was near his church.. he showed up with a personal check and I got it for a dollar over..  turned

That is only a 4% ROE.

@Mike Cumbie The way you talk it sounds like the US has judges just itching to overturn basic contractual rights at the drop of a hat, I don't buy that.

But at some point, I am just not making best use of the ~100k equity sitting in this property - So, at what point does RoE drop far enough that the only logical financial decision is to 1031-exchange and trade-up?

i bought the home for 384 in 2015 and put 60k down payment. over the years i spent about 50k in rehab. not sure where else to invest. listening to biggerpockets episode # 853 got me thinking about looking at ROE not cash flow as much. so i was just curious what more advanced investors thought about my situation. 

Have you heard any update on the luck with homeowners trying to overturn that?