In some states (like Virginia) if you own over 4 rental properties, at least one of which falls inside certain counties in Virginia, you are subject to the much more restrictive Landlord and Tenant laws.

Sorry it's a non-committal answer but there is no single set of rules written about how to price this out you set this up.

You also don't mention if you paid a Realtor to find your tenants.My rule of thumb is that MONTHLY rent needs to be AT LEAST 1% of value of the house, but then I'm looking for a higher return.

All depends on what you negotiate.As a general rule of thumb if you use a property manager you will pay: -1 month's rent for Managment fees (rent collection, maintenance, financial, etc) -1 month's rent for Listing fees (advertising, screening tenants, lease signing)So, the easy-sneezy solution will cost you 2 months (16%-24%) of your rental income each year for a normal propert under a one year lease.

Mede,I do not have any idea on how the rules change in Canada versus the US.

This is where foreign investors can ask about the laws and rules required for investing here in the states.

Here is something that I found on the web, but I don't have any idea how accurate it is.Foreclosure rules vary from state to state and I don't think anyone wants to give you bad information.

-There currently isn't much maintenence considering the property is 9 years old (probably about the time to start having some things break though).A little more info: I bought the property in 2000 so I am now beyond the 2 out of 5 year rule to avoid capital gains (shoulda sold it last year).

The number one rule of investing is to not lose your capital.

You've got to make sure that there are no restrictions expressed in the lease-option contract that prohibits assignment.