If you build a rental property business on this cash flow equation, you will soon be broke and your properties foreclosed upon!

So whether devices such as computers, phone boosters etc...are considered "small appliances" is not even part of the equation because usages, or unintentional usages has nothing to do with the installations.What is clear is that the circuit supplying the kitchen walls and counters cannot be split off to power undercabinet lights or kitchen island lights, and cannot be split off to power "any OTHER outlets", the key is the interpretation of "other" here.

Cashflow should weigh heavily into the equation not just appreciation.

There are lots of factors to this equation and the most significant one is what market you choose to invest in?

If you are at the point in your investing career that you are ready to do a flip I would imagine you have a pretty good handle on what your holding costs will be exactly and you can start factoring that in to the equation but 70% will be an extremely difficult benchmark to hit.

There are definitely better and worse parts of that neighborhood, but in general the Northland/Forest Park area is considered high crime, so you definitely need to factor that in to your equation. $950/month renters in that area will likely be people whose credit/background info don't qualify them for better parts of town.On the plus side, that is a huge multi-ethnic area - I'm talking off-the-boat immigrant communities (hence all the ethnic groceries in the area).

Some people got cut out of the equation.

Also shows a cash flow of ~200-300 a month.If anyone has a more applicable formula or forecasting equation than the 50% rule I would love to see it.

I would definitely still look for any red flag issues and just leave affordability out of the equation.

You left out the cashflow portion of this equation to know if the property will make positive cashflow if you take out the whole 80% in the cash out refi?