Based on your financial expertise, provide your response or viewpoint on the given financial question or topic. The response format is open.

Merits of buying apartment houses and renting them
Insurance - get estimate from an insurance agent who works with policies for commercial real estate.  See comments below regarding incorporation. Taxes - if this was basic income for a simple LLC, estimating 25-40% and adjusting over time might work.  Rental property is a whole different prospect.  Financial experts who specialize in rental properties would be a good source of advice, and worth the cost.  See below regarding incorporating. Real estate appreciation - not something you can count on for developed property.  Appreciation used to be almost guaranteed to at least keep up with inflation.  Now property values are not even guaranteed to go up.  Never have been but the general rule was improved real estate in good repair appreciated in price.  Even if property values increase over time, rental properties depreciate.  In fact, for rental properties, you can claim a certain rate of depreciation over time as an expense on taxes.  This depreciation could mean selling for less than you paid for the property after a number of years, and owing capital gains taxes, since you would owe the difference between the depreciated value and the sale price. Related to taxes are local codes.  Some areas require you to have a property management license to handle buildings with more than a certain number of units. If you are going to own rental properties, you should protect your private financial life by incorporating.  Form a company.  The company will own the property and hire any maintenance people or property managers or security staff or any similar employment activities.  The company takes out the insurance and pays taxes.  The company can pay you a salary.  So, bottom line, you can have the company pay all the expenses and take all the risks.  Then, assuming there's any money left after expenses, the company can pay you a manager's salary.  That way if the worst happens and a tenant breaks their hip in the shower and sues you for ONE MILLION DOLLARS and wins, the company folds and you walk away.  You might even consider two companies.  One to own the property and lease it to a property management company.  The property management company can then go bankrupt in case of some sort of liability issue, in which case you still keep the property, form a new management company, repaint and rename the property and move on. TL;DR:  Get insurance advice from insurance agent before you buy.  Same for taxes from an accountant.  Get trained as a property manager if your local codes require it (might be a good idea anyway).  Incorporate and have the company take all the risks.