I'm trying to develop a thought process/system that allows myself to step back and measure my current risk from leverage and compare that to the buy and hold opportunities in the market.Here's my system that combines some of Dave's basic advice with my own thoughts on when to buy/deleverage/wait and see:1. 

Strictly speaking these are not expenses, but rather expenditures that either will improve the property (like a new roof), or an asset expenditure (like a washer/dryer).  

The property value isn't what's at risk, it's the equity.Now combine this with what you just wrote and you have the best risk control. 

I recently got a call from a woman who owns a vacant lot. a Lot that I thought was 7500 sq ft and zoned R1.5 - come to find out she actually combined the lot with the one next door and its 15k sq feet.

Applicants must have a combined gross income of at least three times the monthly rent.

Hello Jay,I use a combination of rents from:a) Zillow (Rent for this zip code)b) HotpadsI have a monthly subscription to Rentometer, however have not used them much since.Regards,Ken

Yet I do like the idea of using that method combined with the M to M that @Michele Fischer mentioned. 

I understand this is not sustainable with the mortgage so we are going to pay $50k on the principal to make it self-sustainable.We should be able to save approximately $50k/yr combined for the next 5 years safely.Should we pay 40k/yr additionally on the home principal to get it paid off in under 10 years to earn fixed income and sell when we want to retire/start a business?

With a combined experience of nearly 40 years as lawyers in Nevada doing solely complex transactions, Drury Galati Ltd. has the experience to get the deal negotiated and closed.

The third option would combine the 2, flipping houses while I study.