I've considered buying investment properties for years, but can never make the numbers work vs. keeping the money in a long-term, diversified stock portfolio. The only opportunities seem to be when the housing market takes a real downturn and you have cash on the sidelines, can somehow beat out the pros in buying property that will benefit from planned development in the area, or have the skills/time to do major improvements yourself. Doesn't seem to make sense to accept mid single digit returns given the work and risks involved. Am I missing something, or is your main motivation to be a landlord aversion (or diversification) to the stock market?

I'd definitely be attracted to an opportunity like that, and am willing to put in some sweat equity. Probably tough to find homes that can yield that kind of cash flow and return in my area, but I may try to find a good broker and take a harder look.

Probably just being too conservative in my assumptions about expenses and risks. I have a lot of financial and business experience so have no problem with the variables and calculations. I recently retired at a relatively young age, and am looking for something else to keep busy and get a better yield than current bond rates without taking on a lot of risk. I'm pretty handy, enjoy real estate and understand all the legal/business aspects so property investment seems like a good fit. Will talk to some good realtors and do more research in the new year - too bad you don't live in SC.