You get a Capitalization Rate (CAP Rate), which equals your annualized return by dividing the Net Operating Income (you had gross in your narrative) by the purchase price.

So, coming in to the real estate field with no capital it seems like a good first step to get my feet wet and get a better understanding of real estate investing as a whole.Since I will be on the buying side of the deal, obviously negotiating will be a big part of my job.

Most people I know start with low money down programs so they can get away with a initial capital investment of around $25k but you also need reserves.  

Equity split - This is more of a straightforward partnership where profits are divided based on the initial capital invested.

I don't have the capital to replace the HVAC at this time or the credit to finance it.

Do some smaller dollar private lendingA property is too capital intensive and $20k will not get you very far.You also did not describe what level of risk you want to take, so that is something also to take into consideration when evaluating where to invest.

Never stop hoarding capital.

Quote from @Melanie Baldridge: Why I like investing in real estate more than 401(k)s.Both offer tax deferrals, but here's the difference:If you're making pre-tax contributions to your 401(k), then withdrawals = ordinary income tax.With real estate gains, you're paying capital gains tax (which is typically lower).Plus, RE investors get:1.

@Matthew Drouin I haven't even dreamed of doing what I'm talking about but research the subject I've been brought to various YouTube video offer case studies & case analysis which would have me to believe deals can be done by lone individuals without any capital of their own being spent.

Capital Gains:a.