@Kevin Kim In a good part of Los Angeles you may not be cash flowing right away, it may take a few years; but in a final calculation you'll be in plus (considering interest and insurance tax deductions, depreciation, building equity instead of paying for someone's mortgage), etc).

Any such investing has to be done entirely at arm's length and purely for the benefit of the retirement plan, so you could not use this for your own property or to generate income for yourselves - other than taxable distributions from the IRA after age 59 1/2.There is a lot of good information here on BP about the general concept of these plans.  

It looks like your capping home income in whatever calculation you are doing which is literally one of the worst things you can do because you will pay 20 grand for a run down home thats worth zero and you will do it 26 times over.....I don't think Frank and Dave have a "sky high formula" and i feel like you are missing the entire picture here. 

if you can swing it go for it A $440k mortgage would be around $2100 per month so would have some positive flow  Use the rental properties calculator to get your final numbers(it is under the analyze tab)

You want to be very calculated with what you plan to do.

Let's take this from the bottom up.Using most of your numbers I'm getting a cap rate of 5% which I calculated by dividing the NOI by the total costs.

Does that mean I don't have to do HMDA reporting or BISC calculations and reports?

Colombo, scratch your head, the longer you can take with this calculation the better.

Sorry for the confusion@Mike HartzogLove your calculator you created.

He was willing to take the time to work with me and calculate my rental income Etc where others just said it wouldn't work.