Often times realtors will advertise a property as being "cashflowing" but in reality after cap ex, vacancy, management fees, it does not produce as well as you think. 

The problem that I'm facing is the reality of whether this would possible or not.

In reality with all things being equal your 100% of 20K is back in 40 months, after that your return is infinite.ROI is more the entire investment.  

Make an offer on a 3 bedroom 1 bath house in a desirable popular neighborhood that has a finished (non-permitted) basement w/ a full bathroom, sink, separate entrance outside & washer/dryer.

Everyone talks about capital and property management but, in reality, those are irrelevant if you don't have good deal flow.

It will return a result that literally does not reflect reality, namely, it will say I only make about $5k/mo.

But the reality is that it's now your house and she's living there rent free. 

Under the bath sink, will be a long comb device for removing hair from bath drains, etc. 

Account ClosedIf you can sink $5k-$7k into rewiring, it might not increase your value but it will make it more salable. 

But the reality is that after the creation of the LLC in most states, the Series LLC immediately came into the game.