Most successful builder developers make that amount annually and or far more. but generally its appreciation  like you did timing ATL correctly.. or its value add.. or its selling your business you started from ground up..  

So here are the numbers:We are working on getting financing for the property for about 80k and then get a second for about 20k, which would probably leave us about 5k in to the property.Rents - $1977Mortgage (80k at 5.5% for 20 years) $550Taxes and insurance $110Average utilities ( I pay a portion since some are on the same meters) $1202nd position passive note investor (at 10%) $167Cap X and maintenance $150Monthly cash flow = $880 split with a partner or $440 each.ROI = 880 x 12 = 10,560/5000 = 211% annually.

Considering these will be short term, 3-6 months, are you calculating a standard annual rate and then dividing by the number months the money was actually loaned and paying out that way?

At the current monthly rent and my offer price cap rate would be around 12% with a COC ROI around 20-23% generating an annual cash flow of around $25k after expenses.

You can find them at www.biggerpockets.com/llforms and they are also available as a perk of the Annual Pro membership.

Not sure where Rentometer pulls its rental info, but property manager thought it looked inflated.According to Trulia, the area has seen a steady 3% annual growth in property values.

It is a bit of a hassle to form, but it's crippled by the annual $800 franchise tax California so jubilantly exercised on it's LLCs.

There are very few items that you would have to address on an annual basis.

2) Why do you not assume any annual expense increase?

I would start by offering 1x the annual net but there are still plenty of other factors to consider.