@Sean KuhnIf you put 12K of initial capital improvements into the property at purchase then I would include that amount in your initial capital cost (purchase + cost to put in service) and use that amount when calculating CAP, CoC, or any other measure of return.

Turner's advice and not overthink it ;) I was also thinking of maybe aiming for this one part of town that is older and has undergone 15 years of revival, and thus, it's clear what trajectory it's on.

Of course, if an opportunity to dispose of one of our properties, for a profit, arises out of plan, we would avail ourselves of the situation if it makes sense to so do ... there's always another property.We have taken measures to setup our property holdings such that they could be passed along to the next generation, while not irrevocably committing ourselves to that path.

If you're aiming for that kind of return then it might work for you, keeping in mind what @Giovanni Isaksen mentioned.Personally, I think you could get more than 4.74% out of your $100,000 down.

Don't ever aim for full retail price unless your market is hot enough that you are going to get multiple offers.

Personally I like to have two or three options and I measure the risk for each one.

But are their any investors out there who just aims for homes in a great neighborhood with great rental potential and just go for it?

Aim for the kind of tenants that stay long term.

Start setting SMART (specify, measurable, achievable, relevant and timebound) goals every year and keep moving forward towards your bigger picture.Good luck

Over time, I've learned that the failure list isn't really a good measure of the longevity of a bank.