Birds of a Feather flock together.If you are an urbane sophisticate, having a roommate who drives a wrecker truck and welds for a living might not be as pleasant for you as someone more with your interests in life, and vice versa. 

Ask your 401k company for a loan on the money, usually you can borrow 70% at 4.5 % rate which then you make payroll payments set up to pay it back .

Don't calculate appreciation at all in your formula, ONLY cash flow IMO.I see a couple of guys who own 60+ properties I the couple of small towns I grew up in, and they are NOTHING special, they just simply bought every house they could for 25-55K spent $10K in lipstick reno, and rent them all out for 600-850/mo.Now the downside here, is that the mental bandwidth you'll need to communicate with this level of sophistication of tenant will be heavy. 

Lots of risks over-sophisticating little residential property with debt on it. 

All of the examples in the book and practice problems typically revolve around multi-million dollar properties, so it does require some level of sophistication. 

My (meanest, but) best tenant is not particularly sophisticated, but has rent scheduled as a recurring auto-payment, God bless her.

He also rehabs SFHs and commercial buildings just to keep guys on his payroll "busy" :)My presentation was on point.

Would it be a misguided attempt to shore up the insolvent payroll tax confiscatory system that doles out money to poor investors in their twilight years?

Please rate the "investor" for me, sophisticated or a first timer?

-Material is paid directly by me (again no markup).So essentially he is working for me in the capacity of s project manger, but is not my payroll.