You may want to do a search here on BP for the explanations of NOI, COC, IRR etc.In any case, good luck with your first investment!

Roy Oliphant thanks for that explanation, that was the answer I was looking for.

Of course, getting it under market is better, but to me, that doesn't preclude at-market deals if everything works out numerically.

Cost is $39,900 and will most likely rent for $700/month.I plan to have this house paid off in 18 months, at which point I will begin using the additional cash flow for future deals, savings, etc.The question is at what point, numerically, can I stop putting the normal percentages (i.e. 7.5% for vacancies, 10% for maintenance) away from the rent monthly, or at least reduce the amount to use more of the income for future investments?

I will say, I've picked up a solid base of knowledge thanks to numerous helpful podcasts, blogs & books that have been recommended here and elsewhere.  

I disagree that tax can only be deferred for as in the scenario where we take back a 2nd note for any am't above $800K for the house, the payments can be made over time, which then can be paid in years when there is no W-2 income or offset against numerous mortgage interest deductions.  

And what if you have numerous apartments and storage buildings..

I've read around the forums and listened to numerous podcasts and figured that it's about time I provided an intro.A little about myself:Based out of San Jose / San Francisco, CARecent college graduateSpent the past 3 years working full-time in tech startup sales (yup - I was still attending school)Currently transitioning job positions from smaller companies to Indeed.com - also in salesSaved up money from my various jobs to purchase my first rental in Sacramento, CA using BRRRCurrently at 4 total rentals in Sacramento.  

That is the best explanation in detail I received from any BP member so far.

Is there anyone out there with a solid explanation of what the real estate market future looks like and why?