@Michael Newman,I use these sources:current T12 & rent roll (if available)comparable rents from broker's OM packagecomparable rents from neighboring properties (MLS, rentometer.com, umovefree.com, calling to the property)expenses provided by management companies that have similar properties under managementexpenses (ranges) from NAA survey - usually outdated but give a 10000 ft picture and helps establishing some baselines.

Unfortunately, my current employment will not cover the additional properties but with the tenants' rent I could pay for all said expenses.

But I am not for sure which investing strategy is the best one in the progressive & affordable market that I am in (unlike the more expensive California areas).

I plan to use that 40k towards renovation costs, holding costs, & other expenses.

Net rents (minus 5% vacancies) is $170k expenses are $48k.  

Do your due diligence on that and spend your time finding out what that particular property is worth for you and verify everything as far as utility and the expenses that come with owning a property. 

@Benjamin Cowles To be successful in the industry does not mean that all you do is buy property at a steep discount at the expense of a seller.

The rule of thumb is 50% of rent will go to expenses NOT including debit service.

Just got a quote today that is about 3-4x as expensive as what I have to pay in NM and AZ.  

They were 2/2 units and it was priced at 825k too.I'm a little biased though, I think everything is stupid expensive right now.