If its a duplex, odds are in your favor that both units wont go vacant unexpectedly, however if its a single family and it goes vacant, I would tack on an extra month since you wont be getting any rental income. 

I look forward to hearing back from other BP members in the area and starting my networking foundation as I begin this new exciting adventure.GOAL: To develop supplemental income while reducing my monthly expenses.Hope you all are having a great Tuesday!

Of course, there are turkeys at every income level.Brian

If you rent it, true you might be able to get rent to offset the mortgage, but also keep in mind that some lenders will not treat your rent income as rent income until you can prove to them that you have done this for awhile.

I always have new ideas, but right now I am particularly interested in using LLCs and owner financing to purchase properties that generate monthly income.

Real Estate is more of a long term plan for retirement and passive income...There are a million books out there (I know, I've read them!)

A little about my goals: I want to pick up rentals until I can use the passive income to create a lifestyle I want.

We have aprox 150-200k to work with, and are trying to generate $2500 a month in passive income (to cover our main mortgage).

Asking price..850,000GR.....75,600...No vacancy added 10% for vacancy....75600-7560=68,040Expenses...26,879.15...not showing management....Insurance......Gas 
Took 50% of adjusted gross income 
Which equaled..34,020 The cap rate with the price of 850,000 and NOI of 48,721 = 5.7%.

.$1400 Income-$140 Mgmt Fee (%10)-$112 Vacancy (%8)-$210 Mntc/Repairs/Capx (%15)-$915 Mortgage (PITI)I know it's tight but do these numbers look reasonable?