It is also evident that you left out many of the operating expenses, such as management (even if you do it yourself), utilities (even if only during vacancies), office supplies, legal fees, evictions, damage done by tenants in excess of the security deposit, entity maintenance, lawsuits, capital expenses (not technically an operating expense), etc, etc, etc.You might want to read one of the 50% Rule sticky threads in the General and Landlording topic areas.Good Luck,Mike

Seems pretty good from my rough estimates.But how does one jump into a multi as a first rental without loosing their shirt.

You need to find the place they got in at and attach a mesh screen over it leaving the bottom side a bit loose (and make sure it overlaps the wall) so they have to slither through the mesh and the wall to get out.

The short and simple is refinancing a property and taking the excess cash out from the loan. 

I told them they need to leave after they made me loose 220,000. 

I told them they need to leave after they made me loose 220,000.

It is a a mess, several years of deferred maintenance and a couple handfuls of loose ends tossed in for extra measure.  

Outside of the zone is not allowed although I suspect enforcement is fairly loose. 

For my first deal, I went to a credit union and asked for a 10k unsecured loan, I borrowed against a 401k, and used excess student loan money to fund the rest.

For example, if you end up having excess losses that carry forward from year to year, and then you sell one of the properties - then the allocation of overhead expenses will matter.That said, if you want to simplify your bookkeeping - stick with #1, even distribution.