When he'd finish up I'd ask what the total was and he'd say, "I told you $250".

.- My payments (PITI + HOA) total $700/mo, but I rent the property for $1,200, so it has $500/mo in positive cashflow.

Total gross rent of $2,835.

Totally agre with Grant Rothenburger and Ryan Evans here.

Totally normal for a rental.

Thanks for advice guys.I am totally safe on this, as the cash flow is far more than enough to cover the costs.

is that 5% of total purchase price or your monthly rent?

I have a house that I'm about to sell on contract for 82k to a couple that has leased for over 2 years and put down a total of $7,900 (total price was set at $89,900). 

Going back to the questions above I don't know what your situation is but assuming its more of a passive investor (by location) keep in mind many people on here have to invest you don't.Third, if you don't need the income now you might want to think in terms of total return and not just cash flow.

That's changing but not totally yet.