I'm from there and my properties are there--so if you did need referrals for PMs or contractors or whatever, I have those--but other markets certainly do have higher returns now than Atlanta. 

The rules of thumb I have heard are people targeting a 24% return.

@Lucy ChangIn addition to filing a federal + state tax return - some cities/counties have their own filing requirement.It appears that San Jose considers you to be doing business within their boundaries.Below is a link to their website with instructionshttp://www.sanjoseca.gov/businesstaxYou can hire someone to do the proper filings for you or you can look at the instructions and do them yourself.You should look at the instructions on whether to put yourself as a sole proprietorship or a partnership.

She also should have used a certified return letter to verify that you (the owner) received the letter and were notified of the problem.

Your contract makes it appear as if the tenant pre-paid a year's worth of rent increase at $750 so they could demand you return the unused portion.It would be far easier to just write up an agreement that says the tenant is paying $9,000 towards the cost of a new garage and that the garage will be your property and remain  your property, even after the tenant departs.

They passed on deals in both FL and GA because the rents would not support their all in purchase price and expected returns.....

My problem with hard money is not the percent in which they take as I find properties with a great return.

Total Insurance Estimate $ 262.50 Current rent $ 800.00 $ 9,600.00 $ 10.40       $ 21.88 Less: vacancy allowance - 10% $ 40.00 $ 480.00         Net Rental Income $ 760.00 $ 9,120.00   Property Taxes 2.5264% $ 505.28 Plus: Other Income $ - $ -         Total Income $ 760.00 $ 9,120.00 $ 9.88                 EXPENSES         Property Management $ - $ -         Repairs & Maintenance $ 100.00 $ 1,200.00         HOA $ 250.00 $ 3,000.00         Advertising & Legal         Insurance $ 167.00 $ 2,004.00 $ 2.17         Total Expenses $ 517.00 $ 6,204.00 $ 6.72                 Net Operating Income (NOI) $ 243.00 $ 2,916.00                 Less Debt Service (PI) $155.06 $ 1,860.72 $ 2.02         Less Property Taxes $ 42.11 $ -                 Net Cashflow $ 45.83 $ 1,055.28                 Operating Expense Ratio 68.0% (Total Expenses/Total Income)               MORTGAGE INFO         Total Loan Amount $ 20,000         Type of Loan Seller Financed         Term (Months) 240         Interest Rate .07         Down Payment $ 2,000 10.00%         Monthly Payment (PITI) $155.06                 Purchase Price $ 75,000         Closing costs $ 3,000         Rehab $ 7,000         Total initial investment $ 85,000                 LTV 27% Loan Amount/Purchase Price         Cap Rate 4% Annual NOI/Price         Cash-on-Cash Return 146% Annual before-tax cash flow (i.e., NOI)/Down payment    

Now in terms of the returns, when someone is actively engaged in real estate (eg., as a landlord or a flipper or anything else) their returns over time are higher versus being passive (e.g., through a syndication).

You are right about the property management bit in that three-families generally require more maintenance and upkeep vs. condos, but the returns are fare more superior.