If you can borrow $1M at 4% interest rate, and invest it into something that returns 10% dividends, then you are not only able to pay off the monthly interest, but also have 6% left over earning you 60k a year in profit.However, no amount of statistically proving 'this is the most profitable way' can make up for the stress that some people have over large amounts of debt. 

Having this will take a lot of stress off of you and allow you to do more deals faster. 

See following for more on this.https://www.irs.gov/uac/form-990-t-exempt-organization-business-income-tax-return

(I won;t go into the limited exceptions here)  The CA legislators felt like it was unfair to the tenant to have disputes with the current landlord impair their right to get credit and future housing, so they made essentially sealed these cases from public view.This will have two impacts.  

To be able to operate as stress free as possible the little guy should have 10-20K in reserve.

Chris T.

Hard not to be happy when you can walk to the beach in flip flops, shorts, and a T-shirt 12 months out of the year.

The human psyche and habits are really stressed as part of successful long term investing.

OK, I'm going to stir the pot on this one a bit, here goes ... personally, I think escalator clauses are chicken s$%t ... if I were selling a property (and I have been in this situation), I would NOT accept escalator clauses, but rather just instruct the buyer to send in their highest and best offer.

I just read "NOLO Every Landlord's Legal guide".I'm confused with this scenario:Let's say the Property is located in a very desirable location in California, very easy to find tenants.Tenant [T] : has 750 credit score, she has clean records.1-month later, [T] want his new boyfriend [B] to stay as her roommate (also to save money on her rent).As landlord, is it really important to add [B] on the lease as co-tenant?.