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

Is being a landlord a good idea? Is there a lot of risk?
Buying a property and renting it out can be a good investment if it matches your long term goals.  Buying an investment property is a long term investment.  A large chunk of your money will be tied up with the property and difficult to access.  If you put your money into dividend producing stocks you can always sell the stock and have your money back in a matter of days this is not so with a property. (But you can always do a Home equity line of credit (HELOC)) I would also like to point out landlording is not a passive endeavor as JohnFx stated dealing with a tenant can be a lot of work.  This is not work you necessarily have to deal with, it is possible to contract with a property management company that would place tenants and take care of those late night calls.  Property management companies often charge 10% of your monthly rent and will eat a large portion of your profits.  It could be worth the time and headache of tenant relations.  You should build property management into you expenses anyway in case you decide to go that route in the future. There are good things about owning an investment property.  It can produce returns in a couple of ways. If you choose this route it can be lucrative but be sure to do your homework.  You must know the area you are investing very well.  Know the rent, and vacancy rates for Single family homes, look at multifamily homes as a way of mitigating risk(if one unit is vacant the others are still paying).