+PGI-Vacancy=EGIOperating Expenses:-Insurance-RE Taxes-Prperty Management-Utilities-Other Operating expenseNOI = EGI - Operating ExpensesMortgage Payments:-Principal-InterestCF after Debt ServiceCapEx-Capital ExpendituresCF after CapEx-Purchase/+Sale+Financing/-Paydown of remaining balance upon saleNet Cash FlowCalculate your returns off of Net Cash flow.Returns:Levered CoC: Year X CF/Equity InvestedROI: Equity Invested/Total CF Distributions, including saleIRR: Use excel function to calculate (=IRR(equityinvested, Year 1 CF, Year 2 CF, etc.)Compare return metrics to other investment opportunities and pursue accordingly. 

We own several rental properties with excellent ROI.

The cash flow has been excellent and although i've had some horrid tenants  - the bulk of them are just good people that live simple lives.   

Excellent info, thanks! 

One of the applicants was an elementary school teacher,  looked very nice, and told us upfront that she has excellent credit score.

Martin's excellent real estate summit and discovered notes and lending.

@Grant Greene, Excellent advice sir, as it concurs with Brandon Turner's frequent mentioning of just that.

Now I have an excellent credit score, but I'm assuming that wouldn't mean much to the banks, would it? 

From your post it sounds like you've put a lot of thought into your planning and have done an excellent job managing your personal finances.  

Jackie and Ashley at Land Title are excellent, never had a bad experience.