Being Realistic with your goals, which bill covered well in his post.Another thing I do is try and make myself uncomfortable everyday.

Geologists such as myself routinely perform pre-purchase inspections of properties to mitigate these risks.

Young people seem to have done the best with broad stock exposure and viewing a downturn as a "sale" and just keep on the 401k investment routine and not stress about paper losses for money you don't need for 20+ years.You could also cut back your 401k contibutions to just get the match and save for a down payment on RE....just don't spend it!

You have 4 that need to be off your mind and on a routine. #2&6 is where your daily attention should be.

I think we are leaning towards annual inspections, and we're undecided on whether to do a routine service agreement.

I am uncomfortable with this because we seem to be breaking even or going in the hole with this property.

I was interested in investing in a market like Orlando : Median Sales Price: $115,000Median Rent Per Month: $1050Median Household Income: $42,418Population: 255,4831-Year Job Growth Rate: 4.6%1-Year Appreciation Rate: 12.6%3-Year Appreciation Rate: 38.4%Here comes the catch, I could not afford or have the time to be traveling back and forth from California to Florida routinely to manage the property, etc.

After seeing 800 or so REO closings cross my desk during the past 3 years, having the buyer pay any utility bill is outside the normal routine.

I have a fair understanding of home mechanics (plumbing, electrical, etc) but I  contract these tasks out almost always.Looking for connections for our next purchase (later this Fall) as well as fair contractor services (general needs in regards to routine / urgent repairs .

It definitely sounds like routine inspections need to happen with this tenant.