If you say "I have to sell for X or I will lose money" or "I have to get Y rent to pay the mortgage", then you're in trouble.I say this is a stupid rule of thumb because it makes a bunch of assumptions, most of which don't apply.Better to look at an actual deal.

[URL]http://s1363.photobucket.com/user/jodyleblanc1/media/ProvidedFigures_zps4fea7de9.jpg.html[/url]Looking at provided figures (see above), it looks like an ok deal, but digging deeper and using my OWN assumptions of numbers, not so much.

The intent is to push the newly licensed to gain experience and guidance from the more experienced.The assumption has merit.

The assumption of appreciation was a major contributor, which compounded the fact of being over leveraged.

I am not sure that we asked the right questions or the right people so I would not rule out the fact that it is possible.With the assumption that you are not going to be able to title the home in an LLC, you will need to have a commercial landlord policy.

I do not know what I do not know, so anytime I mention what "I know" I am really making a semi-informed assumption (smiles).

My assumption is that the napkin analysis numbers I use are basically the same thing said a different way.

Your assumptions create a tight financial outcome.What is the list price of the tri?

Btw I'm entirely new to the landording and RE investing business so it's all based on assumptions I've made from other analysis I've seen on other spreadsheets or read somewhere.

That increases you income in the DTI calculation, so owning this (very good) rental lowers your DTI.Same calculations and sames assumptions on example 2 gives $200 a month income, $2400 a year.