Im located in Colorado’s front range and a total rookie!

@Ian Bower for a 120K loan, it's in the range of normal.

Building housing is subject to a significant array of regulatory costs, including a broad range of fees, permits, reviews, and other requirements imposed at different stages of the development and the construction process, with both a direct cost and a time/delay cost.

Sounds like you have a good understanding of the strategy.I normally work with clients by giving them a price range of a property they need to buy to get to their desired tax bracket.Best of luck.

I think of it as a range of rental prices of comparable properties and my goal is to make a good return on the lower end of that range of values.

They range from  50k to 70k per year without cleaning.  

Rates will generally be higher than conventional loans—typically in the 7-9% range—depending on your profile and market conditions.

Your range can be from going to your local library for free to spending 90K in some cases.

Acquisition Criteria: Develop clear criteria for the types of properties you target (location, price range, property type, etc.), allowing you to evaluate deals faster and more consistently.

Going to those places will help you stay in your budget and cash flow better too - with property management built in.The hard part with the smaller towns is that they don't always have the big property management setups so thats where you'd have to do some leg work to find ones that do.And you might be able to do bigger str towns or even cities in that price range.