@Cody Strickland - you should strive to get low teens unlevered returns on your first investment.

It just flies in the face of everything I was ever taught about REI, since I was in my late teens. 

I met a very ambitious teen recently.

Usually these guys could speak a foreign language, like Russian in a Russian area.My early knowledge of nearby building "supers" as a teen, is many of them also have daytime jobs, and/or does contracting jobs on the side.

So I always saw myself diving into the world of construction, home remodeling, design, investing, etc. someday (also watching endless hours of HGTV as a teen definitely does something to your brain).

However you want to aim for a cap rate in the teens up to 20%, especially if this is your first investment and you want to build a portfolio off the cash flow.

The tenant (male with Father cosigner, has wife and 2 teen kids living there) has good history other than occasional lateness (1 week), but always caught up with fees.

Same protections.60% of people don’t pay off their cards every month.Consumer Reports says 75% of airline miles are never used.Don’t get credit cards for teens. 80% of college grads have credit card debt.19% of people who declare bankruptcy are in college.Debt consolidation only treats the symptom, not the root cause of spending.Chapter 4: Money Myths The (Non)Secrets of the Rich.Seeking false security in a job you hate is destructive.

It does make some assumptions:Purchase plus rehab is 70% of the ARVARV is the actual price you'll sell forYou're using hard money with a mid teen rate and several pointsYou'll hold about six monthsYour rehab estimate is accurateIf you can change any of those assumptions (e.g., you have your own cash) you can make an appropriate adjustment. 

It's not unusual for investors to realize returns in the mid to high teens and many times the depreciation they share in completely offsets their tax burden on the profits.