Here's a recent breakdown I did with rounded numbers for the sake of ease...Purchase Price: $50kClosing:$2kRepairs: $5k_________All In: $57kEXPENSESPM:1200yearCap Ex: 1200 yearRepairs: $1200 yearVacancy $1200 yearTaxes $1500Insurance $450TOTAL:$6750INCOMERental Income: $1000 month/ 12,000 year$5250 ($437 month) Cash Flow = 9.21% cap rateNow lets say it was 100% financed at 5% for 15 years (yes I know I could put 30 in to make it work) = Payments at $450=  (negative) -23 month cash flowI would love to hear what others have to say about this!

Emily, Just to round out what @Chandra Venkat said, I would want to understand your skill as an operator.

Round Rock and Pflugerville (suburbs to the North) is also good spot for duplexes. 

Then you will be counting your losses as losses.Get out while you can, move into the next round of investing, recover your losses from this deal in future ones, and more profit beyond that....and please, don't rationalize this deal still can <fill in the blank here with all kinds of rationalizations>. 

I want to make sure I understand with an example:If I have a rental property that sells for $320,000 and closing costs/commissions/etc = $20,000 (round number) and I owe $100,000 then according to your formula I would need to purchase (exchange) for a property or properties that cost equal to or greater than $300,000 even though my net proceeds after paying off the mortgage would be $200,000

One of the discouraging barriers is that talking to my RE agent who remains skeptical about me shoring up my buyer's list by asking him to on his MLS portal - round up a list of sold's list of cash buyers.  

I'm a relatively new landlord myself, but in the last 2 years and now 4 total rounds of tenant placement, I was able to find quality tenants and get them under leases within a week of posting the unit each time; on two occasions it was even within 2 days of posting!

I Round rock that will buy you a really nice 2500 square foot house with limestone, nice appliances, etc.

I dusted myself off, and kept an eye on it and now am going through round two.

For the sake of round numbers, let's say it sells for $650k, with $150k in debt.