Actually owning and managing rental property is a brainer. Flipping houses successfully just means watching your dollars to make sure you aren't just being someone's free general contractor for six months. Rentals involve The Human Factor, dealing with professional deadbeats, liars, slobs, animal breeders, absconders, substance abusers, cheats, hostage-takers, free-spirits, and other assorted flotsam and jetsam of society. Yes stay at or above the Lower Middle Class if possible, that helps reduce the hassle factor, and you can do a lot of background checking, but in the end you will learn a lot about human nature that they don't teach in school or portray in the media. Dallas has an online eviction index available, but not here. Texas is pretty landlord friendly. You can get a constable to show up and move them out relatively easily. That doesn't happen in "progressive" cities like SF and NY and Boston. You just have to hope that they haven't trashed the place too badly. If you can factor in your time, and the aggravation of dealing with the occasional a##hole, then knock yourself out. Doing the numbers like mortgage, insurance, and taxes, is the easy part. Leigh Robinson's book Landlording is still in print and was updated in 2010 (the cover art though hasn't change in 33 years). He was in the rental trenches in Berkeley where a Nice Free Place To Stay is a Human Right, and he made it work there, so it is possible. He offers this one great tip: go see where they are living now. That will tell you what they are going to do to your place. And meet the gentle Pit Bulls and the couch-surfing brother they forgot to mention. To be fair there are lots of fantastic renters out there who keep places tidy and pay on time. Its a puzzlement why they have not bought, but its a fact, they exist. Happy hunting.