Originally posted by @Justin Megna:I understand that a typical rental analysis takes the monthly rental amount, sets aside 5% for vacancies, estimates 50% for expenses, and then makes sure the remaining 45% pays debt service and leaves a profit.No idea where you got these numbers, but anyone who runs a business using such simplistic numbers is destined to fail.You have real numbers, use them. 

Biggerpockets also has one, that is much more simplistic.

In my experience, many of the books had I ordered/read were very simplistic and skeletal (not much meat and potatoes in them). 

Thanks to all who came out to defeat both of these proposals that were very thinly vailed attempts to clumsily exploit class envy and resentment utilizing simplistic divide and conquer tactics.Despite our apparent great success in defeating both proposals (when it appeared that we would lose at least one, if not both), we need to remain ever vigilant as those aggressively promoting wealth redsitribution and property confiscation through highly deceptive and discrimmanatory taxation strategies will definitely be back.We need to diligently expose their "You Got, I want, Give Me" entitlement mentality if we are to preserve our California.

The math would look like this:*Note* These numbers are very simplistic.

I had a simplistic view of how cost basis is calculated, assuming it was just original purchase price + value of all improvements. 

So in my opinion the 1% rule is overly simplistic.

Not including principal pay down.This is overly simplistic, as it doesn't take into account vacancy, maintenance, repairs, HOA, utilities, etc but you should get the drift.

Personal debt-to-income ratio is not a consideration for underwriting these loans.In the alternative, some people go to private lenders (in simplistic terms, groups of wealthy people who have pooled together to form a mortgage company) who are willing to lend on investment properties that banks are not willing to underwrite.

I found a few different templates on the internet but settled on a semi-simplistic one that I think (emphasis on think) I've filled out correctly.