A lot of investors around here like to see 8% return, even including an assumed loan on the down payment.As far as the tenant expenses, I agree with others that the investor you've consulted either has extremely low quality housing, or is picking extremely low quality tenants.  

update on deal: the rent rolls for the property were extremely low ( 6 unit complex gross revenues of 4200) it would have been negative cashflow property and there were long term contracts ( any where from 6 to 10 years ) in place that we had to honor upon purchase.

When I use the quick estimations from books I have read, we are extremely lower, like $20,000 lower.

Hello,I currently invest in Baltimore and I'm finding that maintenance costs are extremely high.  

I would be extremely grateful if we could chat over your experience in Keller Williams, and I have a couple of questions regarding Keller Williams and Real Estate as well.

They will be on an extremely tight budget and need an advocate in this process as they must make a decision between buying and renting. 

Dayton OH for instance has a backlog of inventory and is an extreme buyers market. a $30,000 property will get $600 month rental income with taxes around $800 per year and insurance around $550.

Secondly, make sure you get an inspection before you are locked in as I have walked away from houses that had extreme repair costs for specific items (10k and more per issue) due to: Failing septic system, mold remediation, methamphetamine contamination, dry rot.

I live in the bay area, where it costs extremely high to purchase a home.

@Sean WaitI am extremely encouraged with the amount of support and knowledge that bigger pockets offers to someone like me in my position.