Are you adding the leasing fee in under miscellaneous expenses for the year or would you up the PM % to mathematically cover the possible leasing fee each year (or two years).Example: SFH rents for $700/month.

A couple of books to consider on the mathematics of real estate investing:"Mastering Real Estate Investment- examples, metrics and case studies" by Frank GallinelliI found this to be very useful"The Real Estate Math Handbook-Simplified solutions for the real estate investor" by Jamaine BurrellA simpler read that covers the basics

Now, there's no question that, from a mathematical standpoint, the less you spend on a property that cash flows the better your return on investment is.

Anyone on here use any advanced mathematics during deal analysis like determining rent increases, such as using Lagrange multipliers on a constraint curve of a function of price and vacant to maximize profit.

Some people prefer to have their primary always paid because it lets them sleep better at night; some people want that liability to become an asset... that goes deeper into your personal preferences and is something you would have to answer on your own, mathematics aside.Best of luck!

It is less a mathematical decision and more emotional for me.Interesting point you bring up about appreciation versus return.

That is not the proper way to raise that number to the power of 12 mathematically.

Many calculations surrounding returns are based on fancy financial mathematics and university style formulas, but those of us who are in the trenches know that it is critical to separate two entirely different realities.First there is deployed v. not deployed capital.

You can show your wife mathematically how quickly you can pay off your home.Let's say you can show your wife that your primary can be paid off in 5 years so you are totally debt free in five years.

It is a mathematical fact that if you are buying a rental property in any city where the monthly mortgage payment exceeds monthly rental income, or where mortgage payments along with monthly expenses exceed monthly rent, if any of those scenario applies, a down payment would be only other material method to avoid a negative cash flow situation.You let the investor worry about his gamble on the market going up.. thats not your problem.