@David Wong I first lowered my expenses of living to an all time low of 15K/year then bought enough rentals to surpass that in cashflow (including vacancy, mortgage, taxes, insurance, maintenance).

@Aaron David Horton - Yes, 100% , I do have a work crew that does labor/maintenance for all my properties but I manage it all.I shoot for minimums of 14% on SFDs and 16% for multi-families.Regularly do well over that, my record now is 32% for a duplex and around 26% on a house (My top house will actually surpass my best duplex when the tenants move out).

So according to that chart, the percentage of people earning ALL income from capital does not surpass the percentage of people earning income from labor under this top .01% of income earners?

The lenders I work with will run your info through a system and if your surpass the DTI you will automatically be rejected.

IF I chose to pay $1200k for a 30 year loan at 5.1%, how can I work those numbers to see how long I will be paying on the property for that to equal or surpass what I get if I choose to pay $200 for a 30 year loan at 5.5%. 

Even though they had little cash flow they had big equity gains that way surpassed what the cash flow could ever be in those areas.If you buy at the right time in the cycle then just by buying and holding you can get increased equity through rising values with comparable sales with residential and cap rate compression on the commercial side.

Living in NorCal really makes no sense to buy a liability and hope one day will surpass my investments.

Amazingly, I'm going to pursue the duplex, It's a better vehicle for me to start my REI business and achieve and surpass my financial goals.Thanks again and God Bless.

What happens if returns never surpass the 8% pref and there's no financial incentive for your operator anymore?  

Home prices have surpassed pre 2008 market crash prices to put you in perspective.