I already have a well diversified managed stock portfolio and I am looking some passive investment options which will yield a steady cash flow 10 years down the line when everything is paid off.

Principle of the matter is great until you are evicting someone.  

I personally don’t like the exposure of 30 debt and paying 80% of my mortgage payment in profits for the bank. 15 year notes tend to be about 50/50 for a while in terms of principle and interest.

If you don't buy it in this manner you may end up stock with the property.

Obviously contractors have different costs all over the nation, but if I'm doing new flooring/paint/appliances ignoring kitchen hardware we are looking at:Flooring: 1000 sq foot RENTAL --- RENTAL quality flooring $2,500/unit = $5,000Paint: $650/unit (or do it yourself if you want to save on some labor) = $1,300Appliances (Installed): Fridge $550; Dishwasher $425; Stove/Oven $550 X2 of everything = $3,0505% Downpayment assuming list price sale: $5,600Closing costs (2.5% of sales price): $2,800TOTAL INITIAL INVESTMENT: $17,750Cashflow (assuming your expenses and rent hold): $200/moCash on Cash return: 13.5% --- GO GET THAT IN THE STOCK MARKET!!

Similar to people trying to figure out how to profit from the stock market, I am trying to figure out how to profit from RE.It's not very apparent to me what would be the best ROI for me.

Furthermore, the average dividend yield of all DOW Jones stocks averaged only 2.87%. 2015 was a pretty dismal year for stocks.

Most people don't count principle when analyzing a deal.  

Here's a brief summary...Warren Buffett's Success is mostly attributable to: * Use of leverage * Focus on cheap, safe, quality stocks * Returns come more from stock selection than quality management * Wholly-owned companies perform the best“Berkshire Hathaway has realized a Sharpe ratio of 0.76, higher than any other stock or mutual fund with a history of more than 30 years, and Berkshire has a significant alpha to traditional risk factors.

When you buy stock in a company, how often do you fly out to visit the company you're investing in?