It would be passive income that is working to build wealth for you while you sleep, literally.It can be challenging to calculate how much you would make, however.

AirDNA has the studios sleeping 2 guests grossing $52k annually, while a 3 bed 3 bath place sleeping 6-8 grossing maybe $65k.

A 50 gal hot water tank is a SUFFICIENT tank!

I would also consider making sure the SFR has sufficient bathrooms (having private baths helps get you higher rents) and also big enough bedrooms (as many newer SFRs prioritize common areas over bedrooms, but bedrooms are more rentable).

The lion doesn’t lose sleep over the opinions of the sheep !!

@Nancy Stark if you do it as a package you could finance it. probably a 5 or 10 year arm 30 year AM balloon type product which you will have to go back and negotiate after 5 or 10 years. if you have sufficient money to put down  w2 income will not matter. 

Don’t sleep on NS it’s an awesome place to live. 

Sleeps 8.Anyone know people building container homes in the Northeast?

If the cost of living rises at a 2% rate, in keeping with recent history, and your $120K houses fail to rise in value along with it (most "cheap" houses actually lose value over time), your $120,000 will not have sufficient buying power to fully fund your retirement costs.  

The odds of being sued for such a large amount that your insurance wouldn't cover it and you would lose the investment property is astronomically low and not worth losing sleep over.