I've been wanting to diversify into residential real estate, but find that I do not have any extra time to manage properties.

(must live in it first and hope to only live for a year before moving to a home for my partner and myself)Anyway I am trying to sort out an excel spreadsheet that has - a list of properties- what they are listed for- what I would like to get them for- rent- rate costs and extra expenses- loan repayments- monthly and yearly income- and ROII am just having a bit of trouble understanding how I work ROI out.My first example is 50k of my own money with a yearly return of $1872Do I do 1872/50000?

The neighborhood is also on my "up and coming" list, so it's not as shiny as some other neighborhoods yet.As for loans, FHA and VA have extra hoops to jump through for underwriting and its a pain. 

Are you paying extra points for a lower rate?

I’m planning on taking the money to fund my next deal,  I’m in Cleveland though, and the home prices are so low that a couple grand means a lot more than in some other markets like the west coast, where $2,000 fee to pull out an extra 30k makes more sense

We made 2 extra bedrooms out of an enclosed porch/ garage and added a bathroom.

@Eva Fox When you do find a property you want to exchange into, remember to leverage cost segregation to accelerate the depreciation to get extra cash-flow up front.

More then half of the down payment came from a HELOC on my condo, and the other half just working an extra 30 hours a week driving Uber. 

So now your only talking about an extra $200 a month until the furnishing are paid for.

The numbers just haven’t looked good enough (or about even) for the risk and extra work.