Things to think of:
- Just because you think you know someone, doesn't mean they will take care of the joint. Been there, done that.
- There will be periods of time it is vacant, between tenants. Have to have money to float the mortgage during those times.
- Could get a non-payer. Evictions take a long time. Again, you get to float that mortgage. Those folks who decide to stop paying usually decide to stop taking care of (or start tearing up) the place. There goes money for repairs.
- Upkeep cash. Things in a house break. Things in a rental break more often.
- Want a property management company? There goes some more cash. Want them to handle checking on repairs and caring for them...there goes a LOT more cash.
- Tenant decides to skip out on some last bills when they leave (say, the water bill). Ahhh, more cash.
Renting blows. At this point, once the lease on my rental is up, I'll take the loss on the property and sell it. I'm done with this BS.