I assume the backwards approach requires that you establish the cap rate you are seeking, or a gross rent multiple?  

Working a guru system typically makes you a glorified employee without the freedom and resources to get to the ultimate end goal. 

Your cap rate is no where near 9.66%....your gross scheduled rents are 9.66% without any vacancy, taxes, insurance, repairs, capex, etc....more like 5-6%.  

Troy posted in an earlier thread our discounted rent program for an employee at a local NGO.

Total Purchase and works $36,000 -gross rent is $1500- net income after management, repair, taxes, utilities, insurance, vacancies is  ~$600 (insane cap rate)...

I'd end up with about $20k gross rental income.

(FWIW, I know that he is unwilling to sell for less than $200k.)Gross Rents: $1825/mo (doesn't meet the 1% rule)5% Vacany: $91.25/mo (this is a conservative number for our area)Insurance: $60/moUtilities: $125/mo10% Maint: $182.50/mo10% CapEx: $182.50/moProperty Mgmt: SelfR/E Taxes: $190NET OPERATING INCOME: $993.7520% Down Payment: $40kClosing Costs: $3k (ish?)

Can anyone give me a suggestion of what gross rental return investors are shooting for on rental properties?

I then rent out rooms and have tenants help w/ the mortgageYou're looking at $3500-$4500 gross rents depending on # of bedrooms

To get into a 600K property with a 5% conventional loan, you'd need 30K plus closing costs, and you'd be making $4800 gross (including rent from the 1 unit that's owner occupied).