$4200/yr / $35,000 investment = 12% COC return - 12% is achievable if you know what your doing. )Then you quite simply need to divide the total required income by the monthly house income to determine how many houses you need: $41,000/ monthly income / 350/mo/house = 117 SFH'sI imagine your reaction is something like this:"Okay.

Hi BP Community, Total newbie here. 

Hi BP Community, Total newbie here. 

follow this model and in 10 years from now you can realistically own 20 units, cash flowing a total of $5,000 per month.

That makes total sense. 

If you buy at 7% or even 12% cap, but there is no appreciation, then your total returns will be much lower than a deal in a strong market/location with a 6% cap and if you were able to see it after 5-6 years at 5.5% cap. 

@Aaron Klatt that totally makes sense unless you live in a state with no income tax.

The total IRR is higher because you generally have principal pay down on the note, some mortgage interest deduction, tax depreciation write down, and ongoing (hopefully) rental increases.

Rehab Costs Total Rehab Costs ($110,000.00) Total ($110,000.00)After Repair Value $575,000.00When I look at your report all the estimated repairs lines just say "N/A. "  So are you just guessing?

(We will in fact do a total remodel when they leave.)This is in Texas, by the way.