Most deals I'm seeing generate 3% cash on cash, optimistically.   

. - City rental certifications can be required- There is certain paperwork that you need to give someone at the time of signing a lease with them (lead based paint       disclosure and pamphlet, inventory checklist, etc...)- If someone stops paying rent you may need to go through an eviction process- When screening tenants you need to do a thorough check of who you're renting to- There are several Fair Housing laws you need to be aware of when placing a tenantOften times, a PM company will even be able to cover their own cost by receiving the highest rental amount possible for your investment, most likely higher than you could by yourself due to the exposure and avenues they have for marketing.

@Paul Sandhu - great source of leads for your properties.

Up-to-date amenities list Competitive and accurate pricing Up-to-date calendar High booking acceptance rate Accept bookings and respond quickly to traveler requests with all bookings remaining on the HomeAway platformHigh average rating and reviews per listing Give travelers clear and consistent expectations about your property and provide quality experiences that lead to great traveler reviewsLow cancellation rates Honor bookings and avoid cancelling on travelers.

I am looking to dive in the world of real estate investing with the hopes of generating some passive income and one day becoming financially independent.

All three are explained in detail here to help investors make well-informed decisions about private real estate.Benefit #1: Private Real Estate Generates High Absolute ReturnsPrivate real estate offers investors the ability to generate high absolute returns.

Part of the reason you're working so hard on this is you just don't have enough leads.

Partial payment will more than likely lead to a dismissal so you will have to start the process again(This is Texas for people from other states. 

These are all questions that could lead to numerous different answers.

Then the leads came in and I was off doing deals.