I can sympathize with the others who warn of the trials of dealing with low-end rentals (like the angry boyfriend that burned down one of my best properties!)

So it CAN be relatively safe - theoretically I should get all the money I put in plus interest OR I will get a property for around $5K.However, what happens if the house burns down between now and then?

One of these days I am going to find or create a database calculator to factor in all major replacement costs like @Edward Burns details (sum for all items (cost / lifespan) = montly cost)). terms of loan are 3.99% 25 yr amort.

So, what causes the burn out?

Luckily, I know how to evaluate properties and determine which ones are reasonable so I've never gotten burned in this area - but many, MANY people in your position are understandably excited to buy their first rental property and these kinds of emotions are easy to take advantage of - especially for those whose primary objective is to sell you whatever will generate their next commission.

@colleen (not sure why the @ is not working) - i always thought fertilizer promotes stronger roots and the spring gets rid of most of the weeds.maybe i'm going overkill with this though. i've been wrong before. and, yeah, the $22 it cost me in fertilizer affects the return a little.that's why i posted it here on good ol' BP!

@Edward Burns My partner and I have actually set goals for the next 5,10,15 years.

At the beginning of this past summer in 2013, I was promoted to a sales job from porter at the car dealership I work at.

Burning is effective but for some reason, the cities frown upon setting one's lawn on fire.So - we now monitor for burr infestations and if needed will spray.

However, I saw one fund take on "suspect" debt that smelled a lot like a planned crash & burn.