. $2580 of annual returns on a $0 investment is a hell of a return. 

We purchased a 3 bed 1.5 bath home, 1500 square feet on half an acre:Purchase price: 66K; 20% down paymentRent: 850.00PITI: 390.00Vacancy: 10%PM: 8%Repairs: 10%Cap Ex: we have a separate account set aside for this that we fund ourselves and contribute to monthly.Rehab costs: 3K (paint, flooring, cleaning)Monthly cash flow: 222.00Cash on Cash return: 16%I'm happy to have our first deal done.  

Tagging @Gino Barbaro for you, Account Closed.

If you want to manage it yourself, get a merchant account set up so you can take credit cards and plan on spending the $800/yr on HomeAway or VRBO to be included in searches.

My problems were as follows:I asked them (and have the email correspondence to prove it) to do the annual renewal of the home owner's insurance and their representative said they'll do so.  

Also - when calculating your cash flow, be sure to account for property management costs, vacancy, maintenance, and especially cap-ex. 

Tax (listing claims ~$5900 annual, ~3%)$20 - Landscaping/Snow$284 - Vacancy (8%)$284 - Repairs (8%)$355 - CapEx (10%)$426 - Prop.

Wouldn't that save me $150x12 = $1800/yr and therefore I could look at my return on that investment as 36% annual return ($1800year/$5000), and therefore this would be a wiser option then focusing on a second property until I remove my PMI?

Taxes have been properly filed each year to account for the rental income, however the first house listed has not been shown on taxes yet because we do not file this year's until next April.  

From my experience ARMs typically adjust annually or semiannually so you get a fixed rate (often lower than 15 or 30 fixed) for that period of time.