Not too say they have bad info because I think a lot of the principles hold true today and are excellent advice, but there is certainly a naivety in some of them that is only apparent in retrospect, especially the ones who talk down the RE bubble doomsayers of the time (I'm looking at you, Larry B.

That is where i am in the process, as i stated i am new to investing and i am glad to have come upon this site.Welcome to Bigger Pockets Kevin,Please feel free to check out a blog I wrote for Bigger Pockets about investing out of state.http://www.biggerpockets.com/renewsblog/2014/07/26/sight-mind-real-estate-investing-afar/I hope you take some things on board and find them useful.Thanks and have a great day.

So in your scenario where you are obtaining $1500 rent ~$750 of that is going to be going taxes, principle, insurance, interest, maintenance, property management, etc.. 

The best education so far is through universities or state colleges taking applicable classes, do some due diligence on the curriculum, beginning with Principles of Real Estate and go from there.

However, keep in mind that it might be a little short-sighted if you can get better cash-flow and returns in other markets, and therefore your time is better spent there.P.S.

The investor would be loaning me 20k in exchange for full principle and interest re-paid at an agreed upon future date.

By dividing that number in half, you are able to easily see how much you'll have left to pay the monthly mortgage (principle and interest).

I also not including principle pay down.Once the market no longer makes sense, we will reevaluate and see what makes sense. 

Harvard has a great online classes on Principles of Real Estate - targeted towards financial acumen and understanding: http://www.extension.harvard.edu/courses/24251And Real Estate Fundamentals and Investment: http://www.extension.harvard.edu/courses/real-esta...I have taken one of these and plan to take the second sometime soon - highly recommended.

@Gregory Jimison it is against the law for us not to post them in sight visible from the road (this is comical sometimes if house sits back a long way) so everyone hangs it in front window and calls it that.