Figure out what you'd like to be doing in real estate before you squander your cash hoping for a profit.

The truly wealthy aren't much affected by th economic troubles of us peons.The people who are paying 10 million dollars for a house aren't worried about ARMS adjusting.However, nobody gets rich by squandering their money, and people with money are value shoppers.

This takes a little more work, but it's the most fair and reduces the likelihood of tenants that squander utilities.If you choose #2 or #3, there are considerations:Start with an average.

If I had 20k in my bank account before I caught the real estate bug I would squander it, I've wasted a lot of money in my short life. 

I would rather enjoy it today than die in a car accident tomorrow and have my children squander it away.

Being young is such a blessing; we can't squander it!

So I just buy market-price properties, do not use creative financing, have low expectation for PM and allow enough cash flow for them to squander.

AT a 10 cap, you are squandering 30,000 in value.I know that cap rates are not appropriate in duplexes, just showing you the power of leaving 3,000 per year on the table.  

This takes a little more work, but it's the most fair and reduces the likelihood of tenants that squander utilities.If you choose #2 or #3, there are considerations:Start with an average.

Squandering the time value of money.3.