I'm looking in the Central Texas area at SFR, 3br 2 bath and can find good properties around the $250,000 price range.

The building is in the $6,000,000 +/- value range and I have a primary mortgage of $650,000 +/-.

I'm an investor in NJ, mostly in North Jersey but very difficult to grab multi families, anywhere south of Monmouth county there is more inventory and have a better chance of landing something that makes sense. 

@Ian Bower for a 120K loan, it's in the range of normal.

If 2 bed rent is 1,500 a month for  example and range for area is 1400 to 1800 then bottom range which tends to make tenants more sticky and hard to leave.

Im located in Colorado’s front range and a total rookie!

I suggest you do the research on the places that have inventory at your price point and go from there. 

They range from  50k to 70k per year without cleaning.  

Sounds like you have a good understanding of the strategy.I normally work with clients by giving them a price range of a property they need to buy to get to their desired tax bracket.Best of luck.

The investors that I work with like that we have an inventory of new construction investment properties in great markets throughout the state.Connect with me for more information on some of the areas that other investors feel are the best.