They expect a government handout while they drive cars that look better than mine, get expensive hair and nail treatments, and generally sit around all day.

I don't think the question was about the investment as much as the analysis process.When I run a projection like this, I like to make it kind of a "what to expect in the first year" scenario.I also include projected tax benefits, equity buildup (amount of principle paid) and somtime include some estimation of appreciation.So, using your numbers (and a couple of my own assumptions), this is what I get:Your Assumptions:Purchase Price $250,000.00Down Payment $50,000.00Loan Term 30 yearsLoan Rate 7.80%Yearly Income $33,495.00Yearly Expenses $11,412.00My assumptions:Property Appreciation3.00%Buyer's Tax Bracket30.00%Depreciation- Land 20.00% Building 65.00% over 27.5 years Personal Property 15.00% over 5 years1st Year Benefits:Cash Flow$33,495.00Income-$11,412.00Expenses=$22,083.00Net Operating Income $1,439.74Monthly Payment*12Months=$17,276.89Debt Service $22,083.00Net Operating Income-$17,276.89Debt Service=$4,806.11Cash FlowTax Shelter$22,083.00Net Operating Income-$5,909.09Building Depreciation-$7,500.00Personal Property Depreciation-$15,538.73Interest Paid$-6,864.82Taxable Income / Loss $-6,864.82Taxable Income / Loss*30.00%Tax Bracket $2,059.45Total Tax Effect (You save this much in the first year on your taxes...)EquityIn the first year's payemts, $1,738.16 of principle will be paid.AppreciationA property worth $250,000.00 whose value increases by 3.00% per yer will increase in value by $7,500.00 in the first year.Total BenefitCash Flow + Shelter + Equity Increase + Appreciation = $16,103.7132.21% return on down paymentIf you don't like to include Appreciation, then you getCash Flow + Shelter + Equity Increase = $8,603.7117.21% return on down payment

You can expect to put between 10-25% down, but generally 20% of the appraised value is what to expect.

Then, I set my expectations pretty low for what it means to "take care of it."

You can't expect to unload a property in any buyers market very quickly because it is a buyer's market, not a sellers.

THIS year as the year goes on, and next year, I expect it to dwindle to the 8-12% range.

Would you expect to pay a higher interest rate ?

When I finally get my license and find a broker to hire me what can I expect to earn in my first year on average?

Again, once we come up on his radar, I'm fully expecting a negative report because we advocate highly leveraging long term holds and think Neg Am loans (if we're still able to get them) are a good tool for someone who knows how to use them.

Just fyi for anyone expecting feedback from the OP...this thread is from 2006...