If you can negotiate a purchase that is below the value of the property, plus add more value, you can get a pretty good deal.The top things that I look at are cap rate (I aim for 10%), cash flow, and value-add opportunities.

I'm aiming for a 3 bedroom 2 bathroom and I would live in the house as well.

My long term goal seems to align with your experience, but I do not think I am going to aim as high though.  

I am aiming for $40,000 to $50,000.

Seems to me that if it IS a deal, you SHOULD aim to close on it somehow?

Six months is what you should aim for though to keep in reserves though, in my opinion. 

The initial goal is to supplement my income.

Consider your debt to income ratio, including front and back endFront end is your new estimated total mortgage payment (PITI - Principal, interest, taxes and insurance) divided by your monthly income. aim for under 29 %Back end compares all you total monthly debt payments (credit cards, atudent loans, car loans, mortgage, real estate taxes, insurance, and any other consumer loans) to your adjusted gross monthly income.

Financials below - I'm just not sure how much I should realistically be aiming to make off of each pro Mortgage 465 PMI 0                 Insurance 32                 Taxes 64                 Vacancy 45                 Cap Ex 90                 Maintenance 45                 Property Manager 0                 Total Exp. 741                 Income Monthly Rent $900                 Annual Rent $10,800                 Cash Flow Monthly Cash Flow $159               Annual Cash Flow $1,908              perty.

Bank of Texas is the one that brought the meeting together.Did they say whether they're aiming only at 'Subject To' and 'Lease Option' sellers?