<prompt> Human: Hey guys real quick I have saved over 100k... Im 32 single no debt, excellent credit score, make 60k a year... people suggested that I diversify and that I buy a house and rent it out... Im looking at a friends house who put his house at 345k but is willing to give it to me at 325k... the market is hot right now in Southern California, and I have a couple who is ready to rent it out, at 200 more than the monthly mortgage...should I keep investing in the stock market, or should I diversify and enjoy tax breaks and buy the house, which is in good shape...Tl: buy a house to rent out or keep investing? single, good credit and make 60k a year Assistant: Is 200 over mortgage actually pulling a profit? Does that mortgage include tax insurance? How about maintenance, upkeep and other non-reoccurring costs? How long could you float the property if it goes vacant, you have a tenant dispute or any other issues? Human: Its 200 over including tax and insurance... it does not include maintenance, and this is a big fear of mine... but the house its in good shape and people say is a great rental... no other recurring costs... I could probably do 6 months without vacancy but at that point I will move in and get roomates, but that is not ideal... but that is the big question, dealing with tenant and house maintenance issues vs dealing with stock market?  <response>: You can expect to spend at least 1 a year on maintenance over hte life of the home. Thats 300 a month right there and means your house will cash flow negative with 100 occupancy. You might be building equity but by the time you factor in commissions and the negative cash flow youll be in the red for years before factoring in your time and your moneys opportunity cost. 