In that case you'd have to automatically count the rehab as part of the equation. 

Whether or not the numbers make sense is a relative equation.  

Just wanted to point out - Jon Holdman's formula is using NET rental income in his equation, which already takes the debt of the rental property into account (and expenses, which is good) .Keep searching, you should find a lender who will work with you.  

Being able to analyze the deal and knowing how to analyze it truly helps take some of the fear out of the equation.

At $7500, that equates to $938 depreciation and book value of $6,562.

I also hope to save a little money - I notice that at my company, what we pay in insurance for more property (and more valuable property) is less than what I pay, and we have higher liability coverage (though I do have a higher PUP than my company, but I leave that out of the equation).Thoughts?

Another piece to that equation might be the size of these investment props, ie are they 5 units, or single family.

So, the $2,200/mo. we'd be getting in rents for the unit we are leaving would not be considered in the equation as rents received when qualifying for the new property.

It is brilliant for short term to build net worth/ equity but the gamble of losing your *** can be taken out of the equation with proper reserves.

Nobody is "the be all end all" in the equation, if they are they are owning/managing/making a profit on... very few properties.