Purchase price: $290,000 Cash invested: $71,000HOUSE HACK #24B/2BA converted to 6B/3BAPurchase Price: $290,0003% Down Payment + Closing Costs: $15,500Total Renovation Costs: $71,000Seller Concessions: $15,500Total Out of Pocket: $71,000Gross Rents: $4075PITI, Bills, Reserves: $2800Cash Flow: $1275CoC Return: 21%Total ROI (loan pay down, tax benefits, ARV, appreciation): 100%+What made you interested in investing in this type of deal?

You can use that to calculate your ROE.Net Return Components:Net Cash Flow (after expenses, reserves, and debt)Appreciation - 2-4%/yearPrincipal Pay down - use PPMT formula in ExcelDepreciation/Tax Deferred savings - Use your tax bracket to calculate your savings/deferral.Once you have your annual Net Return, you can calculate your Return on Equity by taking the properties equity (current value - 6-8% selling costs - debt) divided by your Net Return. 

I have been serving in the Marine Corps Reserve for almost six years and also work full-time as a Mortgage Loan Officer for a large bank.

If you are someone likes to consider, cap ex, repairs, reserves and vacancies, COC falls apart there as well.There are very few REAL number in real estate.  

Now, someone should retort and say, "well, that's what you have reserves for!" 

As you mentioned, you would then have cash left over for a down payment on an investment property.Keep some of your $60K for reserves.

I have about 10k in reserves from my current rental but want to keep that in place for unforeseen expenses, etc. 

Try B2R - they do blanket portfolio loans, but have some hefty reserves and prepay penalties to watch

A replacement reserve fund is intended to pay for major systems replacements on a predicted schedule.  

I am concerned if you do not have a reserve.