This is how we're filtering through properties, we're looking to hit those CF and ROI numbers conservatively.

So one has to be realistic and ideally conservative when discussing it with investors.

I'm a more conservative investor than most, and that's stopped me from doing some deals that would have made me money.. but it's also meant that I've never lost money, and I'm just fine with that.

But if you go with core/satellite portfolio construction (i.e. most of your investment should be in things that are conservative, with a smaller satellite portion in riskier things) then I think this is a great core holding.2) hard money loans: when underwritten conservatively (65% LTV or lower, no judicial-only states, first lien, etc), they can be a very good defensive investment in the downturn.

If you are a ultra conservative very low risk tolerant investor you could pay down a income property mortgage but that is obviously going to reduce your return on your investment to a ceiling of the prevailing mortgage rates.

I chose what i thought would be a conservative number for 2 main reasons: there are only a few exterior pictures in the listing, which led me to be believe the inside may need work and that the landlord is not on good terms with his/her tenants.

That said, they're very conservative people so I'll take another look. 

opinion.In a very general overview, I current own my home with a mortgage payment around 1150 and have done a comparative market analysis on the rent in my area and they are anywhere between 2000 and 2750.With that being said, I have been entertaining the idea of renting this house out and down sizing/grading a bit and purchasing another home to live in.Essentially, estimating this on the low conservative end of the spectrum from my "due diligence", it appears as if I rented this out I could cover my mortgage for my current home and then also cover the mortgage on the new primary residence.What are your guys' thoughts on this?

I don't typically see anything over 30% (we consider 30% to be very conservative) and that's for properties in the SF Bay Area and HI. 

If your estimates are conservative you may have a decent deal.