So you have roughly, a 27% ROI for your first year -- which seems good.
Have you accounted for:
Income tax?
Property tax?
Insurance costs?
Legal risks: (i.e., you potentially in violation of law)?
Liability risks: (i.e., something happens to a tenant)?
Property damage risks (may be included in cleanup costs)?
Labor costs (i.e., your time)?
Property value appreciation/depreciation (could be a positive)?
After that is all taken into account, I wonder if you end up netting more from a passive investment.
