Also, if there is damage that your insurance pays for, is that an expense?

Luckily they haven't done much damage, its just the extra expense of having them professionally taken care of that really gets to me.

Also, I am not physically in the area and there are no REI clubs there...it's a smaller town.

As an example, the property that I just bought says mold, water damage and plumbing not working condition.

I haven't physically looked at this property yet (I've seen pics of the outside), and am waiting on the expense/income report from the owner.

Without a crystal ball how could I possible know "evictions, legal costs and damage...lawsuits."

In addition to the expenses he listed, you also have advertising, damage done by tenants (above the security deposit), utilities paid by owner (even if the tenant usually pays the utilities), office supplies, management, maintenance, tax preparation, etc, etc, etc (I could go on and on).

I think a certain degree of brain damage is required in this industry..lol

"THE GIRL WE WERE GOING TO EVICT WOULD HAVE BEEN MYRESPONCIBILITY DUE TO THE FACT THAT THE DAMAGE WAS WHILE I OWNED IT.

I've read plenty of books and been on countless REI websites, but a recent epiphany has finally gotten me to take some action and this post marks my first physical baby step towards becoming an investor.