It sounds like you have a good scholarship, so some of my above assumptions may be off.

I am making an uneducated assumption that because Bakersfield is a smaller population that somehow the process will be cheaper and faster... easier?

@Donald Beamon Here is how I see the deal:Purchase Price: $360,000Total Annual Rent: $32,400Gross Yield: 9% (This is the return before expenses)Vacancy Assumption: 5%Vacancy Loss: $1,620 ($32,400 * 5%)Taxes: $5,280Insurance: $480 (Feels a little low)HOA: $0Management: $2,592 ($32,400 * 8%, Even if you manage yourself, you will consider this the cost of your time)Maintenance: $3,240 ($32,400 * 10%, I use 10% as a number, this is probably high, but I would consider $100 a month a minimum. 

Historical continued assumptions could play a part.

Going into a purchase you make estimates and assumptions that, depending on time and luck, could go either way.

There are many times the former owners THINK that the bank now has possession of their house and unaware of their rights- lots of assumptions.

I am sending the bank all the necessary information as well as the cash flow rental model I built to analyze deals that showcase assumptions, income statement, projections, cash flow, debt service, and ROIC (cash on cash return).

In the long run, I think sponsors are more likely to miss on their cash flow projections vs IRR/annual return for two reasons: 1) Cash flow is harder to embellish or at least the assumptions that drive cash flow growth are easier to red flag, and 2) the cap rate environment the past 20 years has only headed one direction for the most part (down) and even the most aggressive assumptions will assume cap rates stay at the same level during the investment hold. 

What is the reality of those assumptions?  

Obviously, this means making some values assumptions. 2.