And make sure to account for the following expenses:1) Mortgage2) Mortgage insurance (PMI or MIP) or FHA Risk base3) Property Taxes4) City Taxes5) HOA (Home Owner’s Association) Dues and Fees and Assessments6) Insurance a) Property Hazard Insurance (0.3-0.45%) b) Flood Insurance c) Earthquake Insurance d) Umbrella Insurance7) Vacancy Rate (usually 8% - the equivalent to one month a year, or 5-6% if multifamily and/or if experienced, if not use 8%)8) Utilities (you’ll have these if your tenant is not covering them and/or during vacancy) a) Water § Sewer § Garbage b) Electricity c) Natural Gas d) Propane9) General Maintenance (usually 5%) a) Upkeep § Landscaping b) Snow removal c) Repairs d) New Appliances e) Make ready10) Capital Expenditures (usually 5%, higher is the property is old and obsolete, less if fully rehabbed and all mechanicals and roof are new)11) Property Management (8%, even if you self manage, your time still has value and there might be a time when you'll want to be completely hands off or you'll not be able to do it, vacation, retirement, etc.), including...

My wife has asked me to look into it but I've always had this stigma that they're depreciating assets that need constant upkeep. 

So with zero leverage, you have 20% of your money at 15% and 80% of your money at 5%....so you make a combined, weighted average of 7% in Plan A.If you happen to have $500,000 in real estate, and you experience nice appreciation....you'll also further do better with Plan B, rather than having $100,000 appreciating in Plan A.

You might find one that is not as experienced based or puts more weight on credit etc. 60% of ARV seems low usually it is 65% to 75%.

If you do not get the rent, or if you do and they default on the utilities again you will need to terminate these tenants.If you end up keeping them when it comes time to renew the lease put them on M2M.

Maintenence and upkeep?  

Accordingly, we decline to give the allocations of the assessor weight in reaching our conclusion.Petitioners based their allocation upon the investigation of petitioner Steven Meiers regarding estimated building replacement costs as of 1977.

Super helpful little guide for annual inspection and upkeep for anyone who is interested.

The dog who bit me was about 10 lbs so I don't like weight limits. 

Well how about at the height of the market, August 2005, they wrote this article titled:In the long run, sleep at home and invest in the stock market.http://www.nytimes.com/2005/08/19/realestate/19rea...Don't worry though, I wouldn't put too much weight in the opinions of the most respected financial and econonmic professionals on the planet, investment properties by a long shot right...