(Keep in mind this is a simplistic calculation but it is basically how it works barring a few nuances)i.e if your income is 50k and we assume you qualify for 4X  your income then you qualify for 50 x 4 = 200. 

@Marcus CathrenI agree about time value of money - it actually should be considered in every investment but everyone focuses on ROI since it is more simplistic. 

The most frustrating thing is how simplistic much of it all is, it truly is simple, yet never done. instead, wildly complicated gymnastics of BS is what happens, because that's what makes a person who earns $144k a year, MILLIONS per year, seeming by magic. 

I thought the example was meh.. but could see how such a simplistic view was appealing to many. 

Built in property manager with a simplistic model to land lord.

It's all out there and easy enough to find.I'm probably thinking too simplistically, but money is all about the spread and if I can increase my spread some way, I'll do it.

I don't personally looked for highly distressed assets so the calculations are pretty simplistic at the end of the day.  

My simplistic take on this, the bank is lending you the 56k to pay back in 30 yr (typically), with the house as warranty that you'll pay (in the form of a conventional mortgage)...

This is kind of simplistic and we'll need to do something a bit more accurate before we move up to larger properties (small apartment complexes and bigger), but for the stage we're at now, it makes sense to us.Best of luck with your plans.

(Putting tax benefits, loan amoritazation and apperciation aside)

I continually think about what my goal is, in terms of how much money I want to make from owning rentals and how many properties I would need to supp...