From a cash-flow perspective, the mortgage is an expense, because it comes out of gross rent.

This house (3 bed/3 bath townhouse) is about 5 houses down from me, and I'm thinking it would be a good investment from a proximity perspective, but would like some outsider opinions on the numbers:Price: $212,000Repairs: $0 (I know the owners, and they are meticulous, and they replaced carpet, paint, and appliances prior to listing)Rents for: $1800/month (based on comps in our neighborhood)PITI: $1465/month (Principal and Interest = $910, Insurance = $45, Assoc Dues = $250, Taxes = $200, PMI = $60)I can only afford to put $30K down on this house, hence the PMI. 

He will be my partner from that perspective.

Bringing along a copy of their accounting to show they have paid $600 in late fees puts it in perspective as well. 

And i find it really helps because he has more experience than i do, and we talk about different problems and he gives his perspective. 

Joe Villeneuve thank you for your added perspective...

To give some perspective, we have purchased 12 properties this year in series LLCs and we have gotten 75% loans on each of them with a small, local bank that does commercial loans.  

., @Neil GoradiaGuys, thank you for your words of encouragement and for putting it in perspective!

I would love some thoughts on what exactly to track from a profitability and managing the management company perspective...  

From a landlord perspective, is it appropriate to address a medical issue with a tenant though?