I have research similar area comps average around $600/mo.Some information:Current asking price is $370,000Current expenses(with month mort of $1,500) are $4,916 using the "back of napkin" technique discussed here.My expenses include 10% vacancy, 5 % repair, no PM though.Cash Flow $4,350-$4,916=($566)Cap Rate $4,916-$1,500/$370,000=11%Cash on Cash is 79%Questions:1. 

More textured surfaces in the kitchen, sounds legit (and sanitary).

I haven't seen any properties yet, but when I do some napkin math based on trulia and other appraisal site it just doesn't seem possible in this market.Either way I've been to a few local REITs and really look forward to getting more involved in Bigger Pockets. 

Is it on a napkin, a computer system, audited by a third party and verified.

I once saved a buddy from buying a park where the sanitaries ran up hill in a major part of a park.

In this article, we’ll shed light on the dynamics of urbanization and offer suggestions of how to invest in it.Challenges AboundOn a worldwide basis, about 1 billion city dwellers live in slums and 700 million have inadequate sanitary facilities.

Is that back of napkin estimate, or 5 years of hard accounting data telling you that?  

That's ok - everyone starts somewhere - but don't fall in love with any strategy details too soon.Some napkin sketch numbers for you:You said you'd prefer apartments in So Cal and you want $25k net per month.

You can write a binding contract on a napkin.

Napkin Calculations for Post Move Out(monthly):PITI: $1200Sewer and Water: $100Trash: covered by taxes, hopefullyHeat/Utilities: on a SFH rental, $0Cap Ex and Ops (my personal minimum is $150/roof/month): $150Mgmt Fee - as a % (general consensus here on BP is 10%. include it even if you think you are going to self manage): $180Vacancy- as a %. (8% represents 1 vacant month/unit/year): $~140Total Expenses: ~$1770So your total rent is going to need to be at least $2000 to make this worth your investment.