@Jacob Sampson Thank you for sharing, I'm playing with your system on the stack of Multi's in front of me.

Just play with the numbers to find an interest rate, length of loan, and purchase price that would work for you and the seller.

Or - invest elsewhere.I ended up investing about an hour outside of the city in a smaller town that has a stable population and am doing a cash flow play instead of property appreciation play.

They don't pay their business gets boarded up plain and simple.The tenants making improvements is also a big bonus.

Gross rents on all 4 is $3,500 a month, netting me around $1,800 a month profit.Now, I got my bonus check from work (new job by this point) and that's going to be used for the down payment of my 7th rental (we close in a week and a half).From 2011 to 2014, I was netting $250 a month in rent income from 1 property.  

DTI is going to play into it using conventional financing, which is why you hit the wall.

(as I sit at my laptop while I watch my kids play in the family room)

Aka kinda play it safe in a way where there won't be a huge lose if there is but won't be massive profits either.

, but i ran the numbers and after that it didn't look so appealing, and if you were to factor in capital gains and other fun government taxes, well, i don't think it's a good option, and there are for sure better ways to exit.The numbers play out like this (not considering taxes, capital gains, and other factors, i was just trying to play around with the idea and keep it simple for the start):Your NOI: ($119,160 + $30,000)  - $70,000 = $79,160 or $2638.67 per year for 30 years and $219.89 per month for 30 years when you factor in the 30% down into it ($137 per month for 30 years)Cap Rate: 2633/70,000 = 3.76% per year for 30 yearsCash flow: $331 per month for 30 years but only $137 of that would be profitROI: 2.33% without the 30% down factored into it (3.76% with the 30% down factored into the calculation)Total ROI = $79,000/$70,000 = 112.86% over the course of 30 yearsConclusion:Well, from what i see here, the problem is the interest rate used.

While it may be true that schools aren't very good in that district, when compared with a GoodSchools.com rating in the rest of Richmond city (surrounding counties are a different story) there isn't much of a statistical difference in quality anywhere inside the city limits which levels the playing field a bit.So that brings it down to whether a potential investor is comfortable landlording in Barton Heights.