I see so many investors, do such ridiculous calculations and get stuck in perpetual analysis paralysis while homes are going up, up, up in value all around them!

...."Well Steve, by my calculations, the potential rent may not cover the monthly nut on the property, so I'm just going to buy this dump property, that has low appreciation potential.  Then I'll run up my credit card fixing the dump up, while driving my credit scores down, all so I don't have $100 deficiency."  

So what if there's a small deficiency? 

Put your grandfather's 1970s strategies aside during this time unique time in history where we're likely going to see a good, steady increase in values over the next 7 to 10 yrs, which can dwarf monthly deficiencies.

PLUS, those deficiencies accumulate in what's called a PALA (Passive Activity Loss Account) which can be written off for years and even after the home is sold correct?

Here are some hard facts:

If you're over 30 and don't have a net worth of over $300,000, what the heck are you going to do, start saving for retirement?  That $35,000  you have in your 401k  (i.e. forced savings) is Peanuts!  It's a JOKE! 

Mr. & Mrs. Thirty year old, you had better wake the (bleep) up and take advantage of this time in the American real estate market, because unless you have wealthy parents who are going to leave you at least $1,000,000 or more, you will work the rest of your lives and/or will be a burden on your kids and their families!  

So get off the fence and put your (bleeping) calculator away and change the trajectory of your life over the next few years.

Or...

...continue with your current plan, and like Arthur on the TV show "King of Queens," just make sure your kids buy a home with a basement that you can have a place to live at 70 yrs old!