Generally speaking, the more positive leverage you have, the more you can multiply your gains.

Some peoples comfort levels are playing the lottery, trade multipliers, penny stocks, drugs-both legal and illegal, restaurants, etc. 

The issues come when you have many people per unit combined with turnover or even a rent increase then multiply that by several units and it becomes work to figure out the dates of residency, amount paid, etc. 

Even in the worst situation he wants enough staying power to ride out any storm, while still being aggressive enough to multiply his net worth through investing.

This amount is divided by the grand total of each apartment’s designated occupant factor, multiplied by the apartment’s individual designated occupant factor.

You can get up to 75% of the ARV in your loan.Example of terms: If the LTC is 90% and the LTV is 70% on a deal with a purchase of $50k, repairs of $25k, and ARV of $100k the deal would look like this:MAX Loan based on LTC: 90% x $75k = $67,500 You take your total costs (purchase + rehab) and multiply it by the LTC number (90%) = your max loan based on LTC.MAX Loan based on LTV: 75% x $100k = $75k You take your ARV and multiply it by the LTV number (75%) = your max loan based on LTV.Every hml that I know of will do these calculations and then lend to you on the LOWEST of these two.I hope this example makes sense.

Joel I think you mean to multiply the gross income by 50 percent.

It's simply one year, 12 months, divided by project time, then multiplied by your return for that project. ie. if your flip takes 4 months and you made a 10% return on your money, your annualized return would be 30%. 12/4 = 3, 3 x 10% = 30%.  

Couple vital issues you are missing:Reserve funds 12 to 24 months multiplied by all you debts plus the subject PITI fully amortized plus HOALender by lender are licensed in some states and not othersMinimum loan amounts apply lender by lender (they don't like small loans as hits HIGH Cost and HOEPA loan laws ceilings).They want a property ready to rent on day one.

I use enough leverage such that the portfolio can get a real multiplier and make the most of the long-term hoped-for appreciation rates, but not so much that I risk needing to commit more and more capital to operate the business - I also maintain a cash cushion, which reduces my risk of ruin, but hurts my returns.