If it's super low like 4-5%, go plant it in a good mutual fund and get the same return without the hassle of being a landlord.

This does have some limitations in that cannot stop them from doing partial payments, which could be a problem if they are facing eviction, etc— but if this is an issue then I guess can just return the money to them without jeopardizing your eviction time frame etc, as long as you have clearly said that no partial payments accepted.

We believe our returns are better than straight renting, otherwise we wouldn't do it this way.

'Too high' is subjective, but we can definitely say prices are rising and returns are compressing. 

Here are my thoughts:Your Year-One cash-on-cash return (CoCR) would be about 8.5% ($5K cash out / ($44K down + $15K repairs)).

I was just talking to someone about the market there with how people who are doing fix and flips are seeing some real good returns and changing neighborhoods.

I think most can agree the potential for return on 5 properties as opposed to 1 is much greater.

The return may not be very high but is a bit easier. 

It is the only way for me to cash flow on rental properties without putting $250k down on a single family home.I buy single families out of state and put $15k down and cash flow $200-250/mo.thats very nice cash on cash return!

This way in the worst case scenario you would at least receive any returns before her.