particle409 posted:

Multiple property landlord here. Get a decent spreadsheet that helps you figure out the cap rate on a building. That's basically the return on your money. It's a fairly simple formula:

(gross yearly income from rentals) - (expenses) / purchase price

Now your yearly expenses should include property taxes, electric that you pay, a realistic vacancy rate/credit loss, etc. If a tenant stops paying and you have to evict them, that's an expense to file eviction paperwork and lost income from non-payment. Figure out your cap rate, and then you can easily see if it's worth the effort to deal with it or just stick the money in the stock market with a broker.