Cash flow is just a part of the equation, and a vital one at that.

It's an equation that does an excellent job projecting and comparing investment opportunities and can be extremely useful in real estate.

I don't know about anyone else, but for me that sort of thing equates into very real and substantial dollars long-term.

Here are the numbers if I rent my current house (thanks @eric fernwood , I'm borrowing the equations you've used on your posts): Purchase Price: $275,000Comps: $320,000 (house with exact same floorplan/landscaping across the street sold for $337k on 3/13/20)SqFt: 2,200Beds: 4Baths: 3Stories: 2Financing: 30 yr fixed at 3.25% ($0 down and closing costs were covered by seller)Cash Flow = (Income - DebtService - ManagementFee - Insurance - RETax - PeriodicFees)Cash Flow = ($1700*12 - $1150*12 - $1700*12*8% - $528 - $2985 - $49*12) = $867/yr or $72/monthNote: this formula doesn't account for occupancy or maintenance however the house is 5 yrs old, in good shape and I have a contingency fund dedicated to these expenses.Now here's the info on the potential condo purchase:Location: Southwest Las Vegas, near 215 and BuffaloList Price: $175,000Comps: $185k-$195kSqFt: 1,167Beds: 3Baths: 2Financing: Pre-approved for conventional 30 yr fixed at ~3.7% with 5% downThe seller currently has tenants with a lease that ends in June. 

I agree with Account Closed additional bedrooms do not necessary equate to income at the same ratio per bedroom.  

@Basit Siddiqi you are right, I am undecided if I move back in and do a cash-out refinance for a lower rate and a lower PITI (savings of about $300 from current loan) that will equate to at least 500 cash flow since the tenant is extending their contract on a month to month basis.

If you know an equation or anyone else that allows you to better utilize signs and you have proven stats please let me know.

You're right that a judge would see through any rhetoric that's masking what equates to blackmail, whether it's paraphrased or not. 

Usually waiting one day for a check does not equate to an emergency need.

But we think we have a manageable amount of risk and have established a portfolio so we are comfortable with the idea that if one note goes bad we will still be OK while we work out the issues.So how do YOU define risk and what factors into your equation.