I rarely assume property values will rise just to be extremely conservative.

But you need to be extremely conservative in all of your estimates - everything will go worse than you think, and cost more than you want.

@Ramsey Blankenship, it looks to me like you're being  a bit too conservative?

I'm picky, and have very high cash flow expectations so my properties are hard to come by.If you want something more realistic tailor it down with more conservative assumptions. 

Some may feel my numbers are highly conservative, but I'd rather not be cash flow negative at the end of the day.When does the lease for the current tenants end?

I am very careful with their funds and probably am a bit more conservative with someone else's money than I would be with my own. 

It sounds like you're on the right track but starting out I would advise to be very conservative in your numbers.

The electric water heater actually keeps costs down in my situation and makes tenants become responsible for conserving resources. 

Ramsey is too conservative. 

I agree that finding a job, bird dogging, getting a license and leasing are all other pathways there and are more conservative - or tried and true - however I don't believe that it is a pie in the sky scenario.