I know this business can be very risky but I believe that it can provide the financial freedom that I am looking for in life.

Thank you Matt for the nice write up.I'm available in the Cleveland market to take on more clients.I come to the table with all of my Insurance info, BBB info, references, ect.Drop me a message anytime.Neal MahoneyCloverleaf Drywall and Construction LLC

An all cash, no loan transaction).For this reason, I calculate both cash on cash vs. total yearly return on my out of pocket money (which includes the down payment).Also note that usually you pay the first month of the mortgage in addition to the down payment, plus the whole of the insurance and (some) taxes at closing.

Rental Monthly Income $4,800.00 (8 rooms x 600) ------- 4800 x 12 = $57,600.00 Monthly Gross Operation Expenses Mortgage950.00 Taxes191.00 Insurance 166.00 Maintenance Housekeeping 216.00 Landscaping 60.00 Repairs 10% - 480.00 Operational Electrical 350.00 Water 150.00 Cable/Internet 150.00 Reserves 10% - 480.00 Total - $3,193.00 Annual Gross Operation Expenses Mortgage11,400.00 Taxes2,292.00 Insurance 1,992.00 Maintenance Housekeeping 2592.00 Landscaping 720.00 Repairs 10% - 5,760.00 Operational Electrical 4,200.00 Water 1,800.00 Cable/Internet 1,800.00 Reserves 10% - 5,760.00 Total - $38,316.00 57,600.00-38,316.00______________NOI $19,284.00 19284.00/46,000.00 (down payment) = 41% Cash on Cash Return (CCR)

Their current payment with mortgage insurance is about $700.

Higher monthly costs via higher insurance, taxes, etc?

Food and traveling are the two most important parts of my life!  

Through self education was able to become both a licensed insurance agent as well as Supply Chain Account Manager, each for over year.

The question I have is, does the insurance and property tax get calculated in as part of the 50% expense?

One idea for someone at your stage in life may also be to boost your human capital some by advancing in your career and saving for that first home (and a 2-4 unit is an ideal target).