Since you want to become a full time investor and live off the income from your rentals, they must produce real positive cash flow, not the false positive cash flow of your formula.You don't have to be here very long before you see a post from an investor saying, "help!

If I gave you a warranty deed for my ownership of the Empire State Building, I'd be opening myself up to legal issues as I'd be falsely warranting some aspects of my ownership.Different types of warranty deeds convey different types of warranties.

Absurd!

Its false advertisement.

Second, I would (perhaps falsely) assume that with a list price of $315K, perhaps there was enough negotiation room to get the price down to where $10K would equal the necessary downpayment. 

That is actually what we started doing, because I thought (like you) that doing it as a % of the rent is absurd. 

I started thinking about investing as a business, and started organizing the parts I needed to make that business successful.After a few false starts (mostly being too conservative when bidding) I ended up with a few properties.  

Most agents (falsely) believe the realtor association will tell them everything they need to know about running either type of business.

She's dispensing false info...She's my friend tho, and has been very good...

Seems absurd.