Stop adding more to the formula with all these exceptions and maybe this or if that happens or something else could happen.That's a whole lot of uncertainty but one thing for certain is that the loan is going to get paid.

And while the formula that was provided in the book may not be exactly right to the penny, it's still good in concept.  

This is factored into the formula on how your credit score is calculated. 

4) REP status does not necessarily increase the chance of audits, but I wouldn't be surprised if the IRS has 'checks' in their system looking for those who are high W-2 earners in companies they do not own, and are also claiming the status.For what it's worth the DIF formula used by the IRS for examination is undefeated against Freedom of Information Act attempts.It's definitely a secret.And the IRS has definitely disallowed amounts related to real estate activities based on the amount of income from other sources, and often does under the Code and Regs of 183 for defeating deductions for real estate."

I've not been a big fan of the formulaic way that a lot of people use percentages to come up with the buy price on a flip as really isn't that accurate.

They get a 10% rate with a low LTV and I get a hassle free loan for 7-10 years.Once you figure out the formula that works for you it's rinse and repeat.

I have a great formula that works extremely well.

Yes, I found 2 buildings in the same area that satisfy my rent price, purchase price, HOA / tax / insurance formula.  

Formula -> Rents Received - all real expenses (not including principal pay-down) - depreciation write off = taxable income (line 26).

I suggest you keep your calculate your purchases using a LTR formula.