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When I was in prison, I learned that the guards at the time averaged about $55,000 a year. As a 19 year old, that seemed like a very large salary, especially given the low IQ and low skill requirements of the job. Some of the guards were despicable people (some were smart and/or honorable too), and I was determined to make more than $55k within 10 years.
Once I landed a full time job paying $36k (and didn't have a girlfriend), I started living in my $3,000 Subaru and saving 95% of my take home. My only expenses were food, gas, and insurance. Gym membership was (and still is) $8/mo. 2 years of this put something like $40k in the bank. Eventually I took my friends offer to rent a room from him for $400/mo. Did that until 2010 when he got married, and I put 20% down on a 4 bedroom house and still had lots of cash in the bank. Rented out 2 of the rooms which paid the mortgage. Had roommates even after I got married as my wife was renting an apartment in Portland for school and was always gone.
I don't know a rule of thumb for rental income vs expense ratio, but I'd shoot for regular expenses to be no more than about 80% of income. You need to accumulate cash for big expenses like replacing the roof or unforeseen issues. Probably easier to get a good margin on slum property, but it's more work and those unforeseen issues are more common due to the lowlifes that don't respect anything. I've had good tenants, but they are less common because if you're conducting your life well, you probably can afford to not live in my $400/mo place.
I achieved my goal of making $55k within 10 years. Of course, I'm sure prison guards make more than that now. Probably closer to $70k now.
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