From what I understand, it is a formula used to determine the true cost (in percentage terms) of financing an investment when using both debt and equity.

If you do, the same can be true about a house 2 blocks away or 2 miles away.2 - Controlling your who your neighbor is. 

I was starting to look to possibly invest in Raytown myself but maybe not if this is true?!

Does this hold true for an appraisal?

Remember true wealth is built with appreciation not cash flow.I, as an OOS investor for about 9 years myself, realized the same problem about 5 years ago, and I started to buy high value properties, most of them are fourplexes. 

@Greg KoszkulVery true, but finding these little issues/errors will just make you that much better at analyzing deals.

It’s also true that the “good feelings” you get from buying a more expensive vehicle are fleeting.

The story you hear about California is true for California residents, but not true for the taxpayer that lives in another state but invests in CA. 

@Ryan Landis so true!

It makes sense to be ready if the supposed drop in prices and massive forecasts for foreclosures are true.