A little worse numbers could easily result in negative cash flow.I hope everyone who invests in RE uses well established pro forma work sheets (such as the BP calculators) but it is not the case. 

Mostly these zero appreciation markets sell on poor pro forma that under represents the cost. 

I use a pro forma spreadsheet to evaluate my options, with a slew of inputs, to help me figure out if a potential investment makes sense from day one, and how it likely will look 10 or 20 years down the road as well.

I’ve been doing a lot of reading and listening to podcasts to learn more about the RE investing world and form a foundation of knowledge.

I may come across as a bit harsh here, but if you just bought the business didn't you analyze the rent and tax situation and incorporate it into your pro forma?

Those are some awesome returns I need to mosey on South someday from Buffalo and pay Erie PA a visit 😀Hey I didn’t say the tenants actually pay the rent every month lol that’s the part you don’t see on the pro formas !

Although every situation is different and the possibility to succeed using either strategy is possible, I'm curious to hear the opinions of experienced investors to form a realistic view of the market before I go ahead and purchase my first investment. 

I'm going into this with 2 partners and looking to form a business. 

And give out a "pro forma" promise of cash flow. 

You will not not able to form a new LLC and get a business loan to develop a property.Sounds like a vacation home would be a good option for you  as they are the easiest and most turn key of everything you mentioned.