So look at this as an exciting opportunity to learn and grow and not as a negative.

I ask that question because values are low now and I only have a small window, the carraige house I already have.

What we have put in-place for ourselves would likely not be appropriate in you situation.In Canada I was going to start investing as sole proprietorship so i could get the lower tax rate ( the need for liability protection via corporate structure is lower in Canada).When you are first starting out there can be benefits to holding {residential rental} property in your own name - especially if you are expecting to produce negative cash-flow in the first year or two as you can use the loss against your earned income from other sources.

Are there any negatives?

I only did that if the seller owned it outright, though.

Given your numbers, you will be getting a very low or negative return on investment.If you did not include maintenance wear and tear costs and will be hiring a private management company, then you’d be losing money on your investment.$20,000 (income) - $13,000 (carrying costs) - $5,000 (management fees) - $2,400 (maintenance costs for wear and tear) = -$400 net incomeIf you did include maintenance wear and tear in that $13,000 and did not hire a private manager, then your return on investment would be 2.7%.$20,000 (income) - $13,000 (carrying costs) = $7,000 net income$7,000/$260,000 = 2.7% return on investmentIf you did include maintenance wear and tear in that $13,000 but decided to hire a private manager for an extra $5,000, then your return on investment would be$20,000 (income) - $13,000 (carrying costs) - $5,000 (management fees) = $2,000 net income$2,000/$260,000 = .77% return on investmentYou’ll have to decide what kind of return on investment is acceptable to you.

Cash flow on this house is negative, no question. ($800)/month without any expenses other than taxes factored in.

The problem with EVERYONE from OUT-OF-STATE on here who bashes or puts their negative two cents in about Detroit and Metro Detroit is that they don't know what they are talking about.

Half of your rate is $1,175 per month, your mortgage payment is $1,150 per month, leaving you $25, however you have a $180 per month water bill, so your are $165 to the negative.

I don't work in it now, but still claim the degree :) Can't help you with SoCal properties as I only buy out-of-state but I'm definitely local in the area and always up for networking as well!