It is a single-tenant property with 4.8 years remaining on the lease, which includes 3% annual rent increases.

We do annual inspections and monitor the condition and remaining life expectation of big-ticket items like roofs, windows, HVAC etc 

I have been running some hypothetical use cases and been comparing the returns with more traditional investment assets, and there must be something that I'm doing wrong because it doesn't add up for me.Scenario 1 - 9.5% Yield vs Stock at 6%: 5 year 12k note with 9.5% Yield, this means 60 payments of 252.02 for an end valance of $15,121.2 which gives me an annualized return of 4.73%.

So in practice, an annual lease term seems one-sided for the tenant's benefit.

There are also additional costs of operating and maintaining an LLC, like separate bank accounts, annual report filings, tax filings, etc.2.

- capturing that fee - does this cover your annual loss? 

In the meantime, I am trying to better understand the Indianapolis (Fishers, Carmel) real estate market and considering getting a realtors license.In Indiana, the cost for the real estate licensing course is approximately ~$580 and an additional ~$80 annually to maintain.

Annual registrations, point of sale inspections, turning a blind eye to the most awful owner occupied housing while being overly strict to investment properties, courts that continue to drag out the eviction process; excruciatingly slow, laborious, and expensive permit processes; evictions that continue to be granted one extension after the next... these are the difficulties you run into in those cities. 

Annual property tax $451.

Annual interest on $500K @ 5% is $25K per year.