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.