Your cap rate is no where near 9.66%....your gross scheduled rents are 9.66% without any vacancy, taxes, insurance, repairs, capex, etc....more like 5-6%.  

Troy posted in an earlier thread our discounted rent program for an employee at a local NGO.

Total Purchase and works $36,000 -gross rent is $1500- net income after management, repair, taxes, utilities, insurance, vacancies is  ~$600 (insane cap rate)...

I'd end up with about $20k gross rental income.

(FWIW, I know that he is unwilling to sell for less than $200k.)Gross Rents: $1825/mo (doesn't meet the 1% rule)5% Vacany: $91.25/mo (this is a conservative number for our area)Insurance: $60/moUtilities: $125/mo10% Maint: $182.50/mo10% CapEx: $182.50/moProperty Mgmt: SelfR/E Taxes: $190NET OPERATING INCOME: $993.7520% Down Payment: $40kClosing Costs: $3k (ish?)

Can anyone give me a suggestion of what gross rental return investors are shooting for on rental properties?

I then rent out rooms and have tenants help w/ the mortgageYou're looking at $3500-$4500 gross rents depending on # of bedrooms

To get into a 600K property with a 5% conventional loan, you'd need 30K plus closing costs, and you'd be making $4800 gross (including rent from the 1 unit that's owner occupied).

One thing I guess I didn't mention, for those of you who are concerned about me doing this myself...I worked for a collection agency for 3 years and, due to special collection laws in Colorado for consumer collections, certain employees could represent the firm in court.  

I'll also have one "managing" account still that I'll use occasionally for things like my employees and credit-card things... and I'll just reconcile as needed.