@Paul Azad, regarding your example, I would confirm if the projected 14% return is net of all fees and carry or gross.  

Employees shuffle around like zombies.  

My ROI will be $7200 per year and the purchase price is $62,500, around a gross ROI of 11%.

For properties being placed into service for the first time, 75% for the gross rent (based on the appraisal/1007) is used. 25% is assumed as expenses/vacancy. 

At the end of the day, we’re running a business, and we’ve got employees and marketing costs to take care of, so we need to make sure it all adds up.

This is the gross proceeds to seller, then minus the real estate commissions. 

It's a lot easier to net out positive when the cap/ex is smaller % of your gross rents.

I don't know, but I've read half of your gross income will probably go into your expenses.

got it, but the business entity in question wether LLC, corp, or whatever the case... does it need to be 100% owned by my wife since she can position herself as "full time" investor as I'm a full time W2 employee currently. 

It's pulling in over $1,000,000 a year in gross revenue.