Afterward, return on equity makes more sense.Greg, I appreciate your response thank you.From the ROE equation I get 11% to get a mortgage and 8% ROE to continue without a mortgage.Here are some further thoughts below, I'd appreciate your thoughts or any holes you can poke in the logic:1.

Imposter Syndrom is something everyone faces and when you add money or a big deal to the equation, it can feel a lot stronger.Something I had to learn is that those feelings of anxiety or fear isn’t a bad thing, its the hard **** you need to do to grow.

. - Annualized ROIFor Rentals that we hold in our portfolio, that were perhaps once BRRRRs, I analyze based on ROE - Return on EquityI used this equation to back into my maximum allowable offer (MAO): ARV - Rehab Costs - Holding Costs - Purchase & Sale Costs - Desired Profit as a percentage of ARV = MAO

This method is not only practical but also reflects a deeper understanding of the property's income-generating potential.Also, we cannot leave out banks in this equation as lending practices in the real estate sector also align with this approach.

That's often part of the equation, if the secondary market isn't/won't be buying the loan the lender may not offer those terms because they don't want to hold it on their books.

Fifth, Roth vs Trad does make a difference.As indicated above the tax will be paid, it falls out of the equations

Say you put that 10k in and made 7% per year for 5 years and compounded it each year that equate to a 7% IRR for those 5 years precluded that your 10k was returned to you at the end of the period.

For some reason "off market" equates to good deal which is laughable in most cases. 

Person in question is near retirement which probably changes the equation vs someone in their 30s. 

They are only part of the affordability equation.