It depends on your business model, how much you value time, and your lifestyle.

All I could think was "Oh yay, Huffington Post will soon be featuring me as a model of inequality, then they will complain I plan to proffit from the investment"I much prefer tenant conversations to go more like." how is your rent 20 bucks cheaper than mine" "well I have been here 5+ years" explaining 200 bucks is hard.

We obtain the oil delivery service and put the tenants on a monthly budget bill plan.

That's not a sustainable strategy or a business model because you'll be out of the real estate game real quick - once you're out of cash.

You lost your rights with the Patriot Act.I prefer the Swiss model: Every household is armed.

But the sales model is nearly unchanged.

I know PM eats into returns, but I've seen several posters/bloggers/article writers who have made this model work.

Suspect areas can have more damage to the unit,turnover,non payers,and excessive management fees (sometimes 12%).It's when you have to deal with problem tenants,evictions,repair issues,etc. that it can take up a bunch of your time.The rate you mentioned for management is normal for my area.Investors only see how much PM's make and PM's see it mainly as a thankless job that pays very little.I can't speak for them but this is the consensus I constantly hear.I looked at the model years and years ago and there is no money in it for a massive headache as a broker/agent.At least not what I classify as a needed return to justify it.Make sure if you use a PM company that they do it full time so they will have systems,processes,and experience in place with contacts as well for repairs.You do not have to use their repair people but it is good to have the network there if you want it.Also build in the PM cost when analyzing a rental and offer accordingly.HUGE MISTAKE is not including PM fee and say you will do it yourself.You try for a few months and then get into a nightmare and no longer want to do it.You hire cheapest PM as you did not figure into your numbers and then the problems start happening.Make sure you include immediate capital repairs to get rent ready when buying and set your reserves as well for vacancy (still pay mortgage if not cash purchase)as well as unexpected items that go out.You have to decide what your main investing goal is.People I know that are already wealthy will spend more to have a property in a nicer area with less cash flow but more appreciation long term and use it more for a tax shelter and refi down the road to buy more properties.Others have it for more cash flow and some appreciation to hold long term and others who want to quit their job and eventually do RE full time are looking to take their small amount and get the biggest bang for the buck regardless of how big a headache it is.

and have a paper trail, and a list of exclusions we review periodically to our business model.

I am in the process of starting an LLC, and I am taking Excel Modeling classes, but I feel like I do not know how to exactly get started...aka, make money, with acquisitions....Any input is appreciated.