A good place to start would be to read as many of the threads in this forum category and any other categories that strike your fancy as you can.

A large bonus room, detached unit, etc then this will be a great option for sure.

Plus, I thought it came with the added bonus of possibly being able to find a way to put less than 20% down and use that capital for another property, while also gaining equity in my primary residence. 

HiI’m not sure this is the right category for the topic butI’m looking for a good reasonably priced garbage removal service in Pueblo CO.If any of you is familiar with a good Handiman as well it would be great.Thanks!

You must be able to add value in one or both of these categories.

I wish I could help more with exactly how you can ask them to prove rents, but I have never requested this so am unsure (bonus points for stellar due diligence though!). 

Scheduled monthly rent + other income (parking, laundry, utility bill back, etc) - vacancy = Effective Gross incomeEffective Gross income - expenses (see below) - debt service = Net Operating IncomeThe expense load can be generally grouped into these categories for small plex's between 2-4 units: Taxes, Insurance, Property management (if applicable), private mortgage insurance (if applicable) owner paid utilities, repair/maintenance/turnover, and reserves. 

I have a job that pays well and I annually get increases and bonuses. 

Consequences could be disastrous Keep everything professional, this sets the tone for the tenantBookkeeping and Taxes If you do it wrong, you’ll end up in jail You can use spreadsheets by dividing it into sections that correspond with the IRS’s categories for income and expense You can also use QuickBooks.

The king in the category is clearly the internal rate of return (IRR) which takes into account cash flow, appreciation, debt repayment, leverage, etc. over the life of the investment.