It cannot take into account the individuals’ tax situation especially that which can influence the desirability of the investment.• The formula does not factor in the effects of appreciation and depreciation.• It does not factor in the risks associated with the underlying property.• It is a simple interest calculation that ignores the effect of compounding interest.

personal preference, When you introduce the word "personal" into investing, you are drifting into an area of influence that does not belong...which leads to the next statement,... and investment goals.  

@John Underwood We initially started looking at houses as well, however one of the larger influences for us was to also be close to the beach.. and the shorter term ROI on Hilton Head doesn't work so great for these types of properties as vacation rentals.

I agree with you that: the Inspector should not be a  part of the negotiations, or try to influence the negotiations. 

But him moving in has been a big boost in my commitment and motivation in real estate, but in everything else too.  

I say prove instead of support, because the lender influence on how an appraisal goes down can't be underestimated.Multi-family properties are fewer in numbers, and while they do get exchanged, they also get held on to for long periods of time pretty often too.

But this is missing the point of margin calls entirely, which makes them in no way an apple to apple comparison Value-Add Potential: comes back to control, but you can directly influence the value of your investment in some way which you can't do - again, rewards hustle and creativity. 

That answer should influence your decision

So I admit I come into real estate from a place of wanting to boost and secure future financial independence, not necessarily due to a love of the field itself.

Who /what is OP, what will they be buying, and how is that going to influence mortgage guidelines?