What would be the downsides to becoming a landlord?

[Michael Nieves]

I currently have 550k in an index fund, which I expect to average 12-15% through the next 10 years (it's mostly in tech). I had a 43% return in 2019 and 47% in 2020, which I I expect to see again. I'm able to withdraw 52k of gains a year tax free due, and it requires no work to run it.

On the flip side, I am exempt from property taxes on my primary residence as well as $0 down, that includes if I purchase and live in a multi-family unit. I know the true strength of real estate is leverage, and I know the returns are usually higher than index funds, but of course vacancies, repairs, bad tenants worry me.

I'm located in the DFW area. I'm interested in hearing your thoughts on the pros and cons of possibly becoming a real estate investor