By your answer Im hoping to create an illustration of a potential worst case scenario for this type of investing.

To illustrate say you have 15 properties making $400 each.  

This is a great thread and it illustrates that there are multiple ways to make money in Real Estate.

And @Ronald Rohde wins the thread with his succinct illustration of why you need a good attorney on your team!

Which are pretty conservative numbers.Stock first because it's the easiest:Purchase start: $30,000Trading fee ($7).Dividend (3%) = $900 a year or 4500 over 5 years.6% appreciation over 5 years your investment is now worth:=FV(0.06,5,0,-29993,1) = $40,137.40 - $7 for selling so $40,130.4You've made: ($10,140.4 + dividends) or $14,640.4So, to come out better, you need to make at least $14,640.Now Rental:Purchase price: $150,000Closing Costs: $4000Cash Flow: $200Cash Flow for 5 years ($12,000)Sell Price: $159,000 (6% appreciation)Mortgage amount after 5 years (assuming 5% 30 year mortgage): $110,378.75After RE Commission of 6%: your appreciation is wiped out, so you still sell for about 150KCost Basis with depreciation recapture: 130K ($4300/Year)Taxes owed on Deprecation recapture: 5K$150000-110.378.75 = $39,621.25 - Taxes for depreciation = $34,621.25 - original amount = 4,621.25 + Cash Flow = $16,621.25I know my math above is not perfect, but it's to illustrate a point. 

First, let’s set the stage to illustrate why the appraisal deserves some thought.

I want to rephrase my questions because I wasn't sure if they were clear... 1) The table illustration seems to suggest that it's more beneficial to obtain a partially amortized loan.

JScott did a great job illustrating why expenses, theoretically, will exhibit a strong correlation to market rents - keeping the 50% guideline in proportion across different markets.I would like to add, though, that this correlation relies on the efficient market hypothesis.

It really helps to illustrate that spending on Doodads like shoes, vacations and cars will delay wealth building and prolong your struggles in the Rat Race.Best of good luck to you. 

These are simpleton examples, that leave a lot of nuances out, only meant for illustration purposes.