re: If you had a million dollars to invest

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For ease of math let's assume you have no other expenses. That's 12k a year on a 100k investment, i.e. a 12% annual return. Assuming you could always sell the house for at least what you paid for it (and hopefully more) that is all profit and positive ROI. It's like buying a dividend paying stock, in a sense.

12% ROI is pretty far above stock market average, and as we said it's not even accounting for appreciation of the asset. Taxes and upkeep will cut into the profits a bit, but it shouldn't be anything serious. The risk is certainly no worse than that of owning stock in a company that goes bankrupt.

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