To get your ratio you take your gross annual income and divide it by your operating expense's or PITIA. 

Any recommendations for books/resources to help the newbie through the process of how to go from start to finish with the development process and each of the steps involved in buying land, going through zoning and planning, how especially to forecast costs and do the due diligence to forecast the potential to divide the plot into smaller lots and build duplexes to hold and rent?

Account Closed...thanks a lot....one more question, how is this cash on cash calculated. my understanding is that it is the free cash (after expenses and mortgage/loans) divided by entry costs i.e downpayment, legal, inspection and appraisal costs.The thing is, i have never had more than 6% using this formular?

Divide the assessed value for the improvements by the total property value, then multiply by your purchase price.  

I 'm looking for the one about sub dividing lots.

You may want to divide it up with partition walls though so they can't access eachother stuff.

Add up what the items you are responsible for would cost to repair/replace and divide them by their reasonable (figured conservatively) useful life.

This is the original details: LOAN TERMS AND CONDITIONS(1) Borrower must have a working bank account in his/her name or company name which will be used for the transfer of the loan.(2) Borrower will start the repayment of his/her loan a month after the loan has been transferred.(3) Borrower will have to either pay back the total interest divided by the total number of months in the loan duration and then pay back the loan amount at the end of the loan term.For example you are given a loan of $100,000.00 for a period of 1 year at 5% interest rate,you will have $5,000.00 as the total interest which means $5,000.00 will be divided by 12 which is the total number of months in a year giving you $416.67 i.e $416.67 will be paid each month beginning after one month of funding for a period of one year then the loan amount of $100,000.00 will be paid at the end of the 1 year loan duration or borrower will pay back principal plus total interest at the same time for the number of months in the loan term i.e. $8,750.00 monthly for a loan amount of $100,000.00 at 5% interest rate for a period of 1 year.(4) Borrower will be given four weeks (a month) grace to payback the principle(loan amount) at the end of the loan duration before legal actions will be taken.(5) Failure to pay back the loan at the expected date / period, legal actions will be taken against the borrower by our attorney.(6) Address:You must inform us about change of circumstances and must tell us promptly if you change your residential address or zip, or if you think there is any information That We Should be aware of.(7) There is no early repayment penalty.(8) Interest: Interest rate shall be 5% irrespective of the loan amount.(9) Loan Process: It takes the interval of 2 to 5 days from application to funding.(10) Loan Amount: Loan amount ranges from $5,000.00 to $5,000,000.00 .(11) Loan duration: Loan duration ranges from 3 months to 20 years.

All tenants are on the hook for 1300/month how they divide that up is on them.

I would sub divide the land before I used It as collateral , then only use the smallest parcel necessary as collateral .