I figured this would be a solid way of getting started. 

@Isaac Terry Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

I will be living in the guest house, while renting out the main.Both units are without washer and dryer units, my question is, do I supply them in the main house; or let potential tenants figure that one out?

You need to get in touch with a lawyer as soon as you can and figure out how to cut off the tenant/landlord relationship.

My friend also owned a rental property in the same community so I figured it would do well.How did you find this deal and how did you negotiate it?

Now, you need to figure out how to find deals and pay for them.

You might be able to do better on the rate, which would make the figures a little more favorable.

I might have a partnership opportunity for you in San Diego but still gotta figure out some details. 

I figured this could possibly put me in a good position for a cash-out refinance when I’m ready to move on to a second property.If I stick within my budget, Philadelphia seems to offer the most housing availability, but I’m concerned about most houses available being in rougher neighborhoods.

Quote from @Mary Peale: Quote from @Collin Hays: While trying to figure out a way to boost revenue is good, I think you are doing pretty darn well if you are short less than $1,000 per month in the first year (or two, or three).