Seems like a way to make a little more money in a student scenario without having to do a lot of construction work or get the city involved.Granted, there would be shared kitchen/bathroom, but on the effort/reward scale it would probably be where I'd settle.

You are putting in long hard hours for the reward at the end of the day.It is not passive, it is a job.

I'm trying to weigh risk to reward.

I don't need to make millions on real estate, but if I can be 30 with $4,000 in cash flow and then go work a rewarding $40-50k/year job with low stress and decent benefits, I'm going to really enjoy life. 

With great reward however comes a lot of work and risk so you'll want to be extremely careful and prepared for some very long days.

But do I feel that by not doing it I'm rewarding bad behavior? 

The steady monthly 2% cash flow is the reward, why give it away if it exists?

Still, the rewards outweigh the headaches, for me at least.- Tom

We want to find clever ways to reward tenants in our latest property.

Best case scenario, you are rewarded for your 10k cap ex with extra maintenance costs from getting a chimney swept and having a pile of wood next to your property which encourages termites and a bunch of other pests and rodents.