There's also the fact that during Covid, Airbnb, going against hosts' cancellation policies, cancelled bookings and refunded any guest who said they had Covid, or their grandmother had Covid so they'd been exposed, or any other ridiculous excuse. 

This creates two loan payments ($100,000 of equity and $300,000 on the new mortgage).Key NumbersHome Equity Loan Interest Rate: 6%Mortgage Interest Rate: 7%Rental Income: $3,000 per monthExpenses (management, taxes, insurance, maintenance): $800 per monthIncome and ExpensesMonthly Rental Income: $3,000Monthly Expenses: $800Monthly Mortgage Payment: $2,000ExplanationThe investor earns $3,000 in rent each month.They pay $2,000 on the investment property mortgage and $800 on other expenses.This leaves $200 profit each month or $2,400 per year.However, you have to pay $6,000 interest on the equity borrowed.This leaves you with an annual loss of $3,600.While the rental property generates positive monthly income, the interest cost of borrowing the initial $100,000 results in an overall loss.

Outside systems like plumbing, sewage, and the water heater should be in good condition, and make sure there are no signs of pests.Additionally, look into property taxes, insurance costs, and zoning laws that could affect future development.

Thank you to @Owen Rosen for helping me with the insurance on this one.

You’ll need errors and omissions insurance (~$400/yr.), and you’ll have to do some continuing education for licensing compliance, then you might have some technology costs and some other costs I’m forgetting, of course vehicle maintenance and insurance and those types of things.

Personally speaking, from an investment broker and investor standpoint, I feel single family investing is the riskiest in some investment ways in comparison to larger investments due to the fact that it only takes 1 repair or tax/insurance hike to put you under or lose all income.

Connecting with an insurance company may be helpful in placing long term tenants in a fully furnished home.  

Hi Hazel, I work with a lot of investor clients from OOS and have carefully vetted general contractors that are licensed, bonded, and insured and do great quality of work.

Year long lease typically, with subletting allowed to offset summer months cost to tenant.I worked out some high-level math: Assuming there is a 6 bedroom single family house for sale for 800k, and I can rent for 6k/month.Financing: 350k cash, 450k loan @30yr, 3.8%.Assumptions: 7% vacancy/yr, $4000/yr repairs, $10k/yr property tax, $4k/yr insurance, 8% management fee+50% first month rent on new leaseMonth-to-month breakdown: Income: $6000 Vacancy, Mgmt fee, repair, taxes, insurance: $2300Loan PI: $2650I'd take home ~$1000/month. 

I just resided an aluminum duplex due to having some of the costs covered by insurance, but all in it was about 17k with new window wraps. 10k was covered by insurance.