I've had the opportunity to grow quicker, but that came with riskier 5-year balloons without a reasonable way out if market takes a 30% drop, but I also could've went even more conservative with the 30-year locked terms and at least until this point I'm happy with my risk tolerance. 

@Ted Tronnes, your numbers a pretty conservative.

With those numbers, which I think are on the conservative side with new leases with tenants that were carefully screened and a rehabbed property, cash flow comes to approximately $700 a month.Financing StrategyI am from Newark/Hillside area, so I know this property is not located in the best area of Newark, but I think the numbers are good, and having a good property manager would help.

Yes, I understand that each of those are not at all conservative and are dependent on different factors and that's what I'm trying to get at.

Buying a house with a very conservative mindset and staying disciplined in all of your endeavors will significantly increase your chances of success.This brings me to the topic.

Primarily GFCI outlets or water conserving fixtures is what an inspector would look for.

Then if you are conservative pay off the debt at an accelerated rate.

We're assuming they're on month to month leases and will likely not renew if we purchase the property unless they pass our screening standards and are willing to pay market rent.The numbers: with an $80k purchase price, 5% down, $550 rents for each side (trying to be conservative), 6.5% interest, property taxes $2000 per year, insurance $650 per year, then including the normal percentages for vacancy/maintenance/cap-ex/PM, and the water bill of approx. $80 per month (his info), cash flow per month is $42.

I just analyzed a deal in Kensington that even using conservative numbers got a 15% cash on cash return.  

I am using as conservative numbers as reasonable, so I know that it (hopefully) won't get any worse than that and the upside is the location has incredible opportunity from the hospital and the university.