Let’s make these other below assumptions:Own20% down payment to avoid PMI (private mortgage insurance)Monthly payment is $980 (principle & interest) + $400 (taxes) + $75 (insurance) = $1,455 per monthTotal interest paid at the 15-year mark = $108,000Balance owed at the 15-year mark = $130,000Mortgage amount is $200,000 ($250,000 – 20% down payment of $50,000)House will appreciate to $330,000Total repairs over 15 years = $37,500Total insurance over 15 years = $13,500 Taxes over 15 years = $72,000 (assuming no increase, which is highly unlikely) Rent Total rent paid over 15 years = $250,000No repair or insurance cost__________________________________Now let’s dive a little deeper into these numbers.

It was not work that I hated, but a lack of freedom, but at this time in my life all I knew of work was that it was a 40 hour or more workweek and if you wanted to own your own business, it would be much more than that, and I had no passion for a business to set my sights on.

She is going be to limited in her options after she hits that list.Now if Mrs Smith is using stolen CC or checks or skipping on the bill and you have filed legal charges, then you can show documentation that she has violated the law and you want the other restaurants to have a head up.So I love the idea in principle....would love to know who all the deadbeats are before they cross my path......and there are some legal ways to try and weed those out, but not perfect.......but bottom line is that forming a list of all the bad tenants in your area is a lawyers dream to sue you as a business for discrimination.Best you can really do is file legal documents like evictions etc rather that do stuff "off the books" and be honest with other landlords when they call for references etc.

@Joe Villeneuve, it's really the principle that is valid in terms of needing to make offers to ever buy anything.

For anyone that is a Ray Dalio fan, he put out a free e-book called "Principles for Navigating Big Debt Crises".

Many are clueless on just basic principles of being in the people-business.A laundry list:Poor communicationPoor responsivenessPoor market understandingPoor inventory awarenessPoor etiquettePoor negotiation skillsPoor contractual understandingPoor transactional/procedural understandingPoor client management (like the nuances with 1st-time buyers)Part-timer/not committedInability to understand client needs (especially prevalent for investor clients)LazyRudeAnd the harsh list goes on....

That's $500 in monthly profit (which I'm actually using to pay off the HELOC principle) and I'm keeping the HELOC open instead of funding an account for reserves. 

Hind sight I feel like we paid too much for the area & for something we aren't in love with.As someone new to real estate I feel like I can do all the listening/reading & use all the calculators however, without real experience I can't be be fully confident in knowing what I have.

Some agents won’t show these “back up” situations, which can be short sighted.  

You have principles in more than one state, so securities laws in both states may have to be dealth with.