Make sure these costs are factored in your equation. (2) Have you ever property managed before?

If we get past affordability peak on the backs of life-time low interest rates, he's not excited about being part of that equation. 

Most people typically buy in this area that I am looking at.Numbers are as follows:Property Type:2005 yr built 4 BD2.5BTH2096 sq ft.3,700 annual taxes$61/sq ft.Anticipated rent based on recent comps: $1,360Tax/mo: 308Insurance: $125 (guess)Management fee (10%) = 136Repair reserve (5%) = 68Vacancy reserve (5%) = 68Total cost before mortgage = $706 (just around the 50% rule)Anything else (costs) I am not anticipating in this equation?

I am sure I am leaving something important out of the equation.

With upgrades we have planned to the units, that situation will only marginally improve over the next several years.Planned upgrades:New windows - $2500 x 17 = $42,500New HVAC & central air - $3000 x 9 = $27,000Interior upgrades to remaining 9 units - $3000 x 9 = $27,000TOTAL - $96,000This sounds daunting, but over the remaining 4 years of our 5 year plan equates to $24,000/year, or $2,000/mo., which is quite manageable.

Then the listing agent has to submit it to the equator system. 

If you want a specific house you're probably going to have to give up on the great deal side of the equation.

in my opinion of the most crucial parts of this equation is takling to a lender before you do anything....a smaller local lender will be more investor friendly..when you wrap your mortgage with a contract, the attorney may or may not want to put a 2nd lien on the property to protect the end buyers...you should make sure this is ok with your lender before you pursue

The 2% Rule is the same thing as using the 50% Rule and applying a 12% Cap Rate on the annual NOI.I was looking at some properties and noticed I got the same value using the 2% rule and using the 50% for an estimate of NOI and happened to be using a 12% Cap.Being a math dork I did write it out symbolically and they both reduce to the same mathematical equation (Which BTW is just multiply the monthly rent by 50).

What kind of down payment % did your $34k equate to?