The property is a 5 unit building with the following information: Rental income is $4,000 per month or $48,000 per year totalTaxes are $375 per month or $4,500 per year (this is higher than current but factoring in that they will increase)Estimated insurance is $200 per month or $2,400 per yearExpenses: Vacancy 8%Management 10%Other expenses Landlord pays water at $400 per month or $4,800 per year Realize this could be a cost savings in the future, but want to analyze as isGeneral maintenance (including minor repairs on property) including grass and pest control estimate at $300 per month or $3,600 per yearCapital reserves for Cap ex (appliances, windows (52 windows on building), roof, siding, etc. which I based on building a capitalization table based on useful life of items and number of units) at $460 per month or $5,520 per yearLoan: All in after down payment the loan would be for $300,000Assuming 7% interest rateAmortized over 20 yearsThus comes out to $2,325 per month or $27,900 per yearSummary Income Per Year:$48,000Property Exp.

@Timothy Winfield my friend who inspired me to get started said the same thing and he came from the plant world also. 

Plus, at 22, all my friend still either lived with their parents or few were renting an apartment for more than my mortgage was costing me and I was earning equity.

For ex in the early part of my research I completely avoided a zipcode , with her inputs , I was able to understand that there are couple of pretty good blocks . 

My friend has $30k to invest in real estate. 

@Robert Kough, I have a friend that does exactly this: buy plex, live in a couple years, after some fix up and market appreciation, refi with conventional, freeing up VA for next purchase. 

My ex sister-in-law rents out a room in her home. 

I used to work for a guru in the apartment investing space, I learned a lot and we became good friends. 

just trying to understand as my friend is trying to do that same situation...

Be-friend them.