So if a person invests wisely/conservatively in real estate (under 65% loan to value, stays away from excessively expensive properties that tend to default more, invest in the areas) perhaps the number drops to 20 or so.One suggestion: there is a fund called BroadMark Capital that invests in 100+ loans.

do you guys have any systems to keep your business expenses separate from the start for better tax planning if not forming a legal entity.

If you do not have equity in the property, the cost to borrow funds will be expensive.  

@Rita Koroll,As for HOAs, you need to consider them as an additional operating expense just like property tax.

@Julie Belton, the cap ex, repairs and insurance expenses seem too low to me.

I sent a repair estimate to them highlighting the most expensive items.  

We haven't had the inspection yet, nor have I verified the seller's rent roll or expenses other than property taxes.

You make $ with non-refundable deposit up front and the spread between the rents.S California sounds like an expensive market to me.  

. - not planning for the eventual transition of properties into a corporation (if deemed by your goals and strategy) from the beginning can have expensive consequences down the road  (as indicated by the investor with whom you spoke recently).

I was wondering if those with Vacation Rentals or those wanting to do vacation rentals, would post an analysis of the ROI, Cash on Cash, etc and a break down of expenses ie Mgt fee, HOA, Utilities, Cleaning, etc.