Tenants will eat you alive if you let them.

Based on my experience, the Fannie Mae DTI ratio limit of 36% is not so restrictive.In your scenario, you are expecting to live off of $5k a month ($60k) a year and that does not take into account things like maintenance, repairs, PM fees, etc that will eat into your passive income.

I am ready to buy, but I don't really want to move.1) I could buy with FHA and get lower rates - but then I'd have to move.2) I could buy with conventional - but eat into my margin, and my monthly rent wouldn't go towards paying down a property.3) I could talk to my landlord and see if he would be willing to do a Rent to Own a.k.a.

Mainly because without deep level knowledge those unknown little mistakes add up to big amounts of lost money ( a compounding effect ).The same holds true when when you are an expert in something in that you catch almost all the little things that can really eat into your success with an investment.

My interest is eating me alive. 

Doesn't matter how much you caulk it won't stop them, chemicals will wash away, my bug guy charges me 40 bucks for an outside spray...The problem is the food...The cat must not be eating the food right away or is leaving something in the bowl. 

The attorney will eat that up before court costs if something goes wrong with the seller financed deal.Here is a site that explains a Master Lease in some detail. 

It's not college unless you're sleeping on an air mattress and eating ramen twice a day right?

I've decided I am never eating there again.

Again, nothing.Are most investors simply hiring a contractor to sub out the work and then presumably eat the 50% markup?