I agree with Chris that your Cash-on-Cash per year return is more relevant than how many exact dollars it is per month. eg.

Income tax – All businesses except partnerships must file an annual income tax return.

I notice that in the first scenario you say 10-15% return?

Washington State WACs are a one-way street running in the agency's favor.  5) You and your tenant will be randomly sent forms that need to filled out and returned. 

Im not approved for a loan but have been told I will be eligible in the new year once my next return is avail for review. 

Your DTI is based on the cost of homeownership of the property, including:1) principal & interest 2) property taxes3) hazard/homeowners ins. 4) mortgage ins. 5) secondary/other financing6) condo/HOA feesOn a multiunit property, you can use 70% if the rental income from the other units, assuming you don’t have a 2+ year history of rental income on your tax returns.

Is it true that if using a self-directed IRA the earnings must return to that account and cannot be pulled until retirement (without tax penalty)?

Too much risk, too little returns, and way to much turnover for new OOS investor.

In return, the investors get a certain percentage back (10% in some cases) after say 1 year - kind of like a GIC but with a much better return.

She only returned the items back to me after she "recall the auction" (over my objections).