As for the reserve amount, usually I do 3-4 months of costs (not income) plus any amounts for upcoming planned capital projects on the property (roof, deck, any replacement / repairs that you are planning).

I have limited capital, so I have been reading books focused on doing deals with little and no money down.

You speak the language and know the code, sadly you can't capitalize (and I mean that word respectively) until your service is done.Best wishes, 

I'm a young guy (22) with hopes of working into my 30's to develop enough career capital and experience to start my own business and become financially independent...

I may be a little outside of that market but i am close enough to capitalize on it.Darrell

Or are you planning on making capital improvements and refinancing?

@Scott A Smith  I currently work in Capital Markets for a national HM lending. 

As for how hard it is.. that goes without saying there is nothing tougher in the real estate game than this.. simply because you need to be proficient in all aspects  of the transaction.. so I guess you just have to decide which slice of the apple you want and how much capital you have to throw at it .. how much time you have and your sales and closings skills.. which again listening to the guys in the room these were no wallflowers..

-Gross Monthly Operating Income3,291.75 Monthly Operating ExpensesProperty Management Fees347.00 Repairs and Maintenance200.00 Real Estate Taxes250.00 Rental Property Insurance298.81 Homeowners/Property Association FeesReplacement Reserve50.00 Utilities150.00 AdvertisingMonthly Operating Expenses1,295.81 Net Operating Income (NOI)Total Annual Operating Income39,501.00 Total Annual Operating Expense15,549.72 Annual Net Operating Income23,951.28 Capitalization Rate and ValuationDesired Capitalization Rate8.00%Property Valuation (Offer Price)299,391.00 Actual Purchase Price167,500.00 Actual Capitalization Rate14.30%Loan InformationDown Payment33,500.00 Loan Amount167,500.00 Acquisition Costs and Loan Fees6,000.00 Length of Mortgage (years)15 Annual Interest Rate6.690%Initial Investment6,000.00 Monthly Mortgage Payment (PI)1,476.66 Annual Interest11,002.25 Annual Principal6,717.63 Total Annual Debt Service17,719.88 Cash Flow and ROITotal Monthly Cash Flow (before taxes)519.28 Total Annual Cash Flow (before taxes)6,231.40 Cash on Cash Return (ROI)103.86%

I have very low paid expenditures, currently the property tax is $1,100 annually, I pay 65$ in insurance and I am setting aside 7% in capital expenditures, best of all no mortgage.