@John Casmon and @James Kojo  that's absolutely correct.

How can I get past my hesitancy to do deals and learn how to use the formula correctly?

I agree with the downturn sentiment but I don't really have any evidence to base it on, so I am just building capital until a) the market corrects itself (which is not likely to affect my market very much anyway) or b) I have enough money to pull the trigger on something.In any event, the numbers don't lie.

Harjeet Bhatti I like to assume people live below their means but you are correct that sometimes a higher income just means higher debt as well!

There are a lot easier methods to get ahead of the curve to buy properties, before bank pulls the rug out from under the owner and auction it off.

@Justin Y.If to you "tax shelter" means any method of reducing taxable income, then you may be focused on the wrong reason to invest in residential rental real estate.There are three advantages to investing in rental property:  Appreciation, Cash flow, and Tax benefits. 

I figure the safest way for the buy and hold would be to place them under an LLC, if I understand you correctly your recommending I keep the companies separate ?

However we are the number 1 seller in the greater Cleveland area so it has proven to be the most effective method on the planet to moving investment property in the Cleveland area.

@Drew Poniewaz you are correct on this one. 

I'm not sure if you did this or not correct me if I'm wrong.