You also need to subtract the interest payments from your take home figure, since thats not getting reinvested. But I mean, 8-10% ROI is nothing to sneeze at if you've exhausted some other financial options.
From what i've talked to with people, one off the worst parts is that you're renting to rental people. Now, say you live in a college down/military town/transient town (oil boom folks?) there are legitimate reasons why someone wants a short term rental. But, most other places, your average renter is a renter because they can't get their crap together enough to own a home. Those are the folks who can loose a job and go full hobo in a months time, those are the folks who have to get evicted and spend the last 3 months or whatever they get trashing the place. Those are the folks who yell in your face when you make really reasonable requests that they not trash your property. And it can be anybody.
Had a coworker tell me about a rental he had, nice looking couple moved in, payed regularly for over a year, then one month missed a payment. He shows up because they aren't returning calls and the place is trashed and looks like an 19th century opium den.
Had another buddy rent his house out because he moved out of state and didn't have time to mess with selling it, so he had his brother manage renting it out. Renters stopped paying after 3 months, 6 months later when they finally are evicted they check out the house and they had stopped paying for trash service and just used one of the bedrooms to store all the trash. Like, trash bags floor to ceiling.
Now, those are the horror stories, my neighbor sold his house about a year ago and a guy 2 blocks down the street bought it, owns several houses in the neighborhood and rents them out. First tenants seem nice, he even popped in and had an awkward "Hey i'm a cool landlord" conversation on their front porch a few weeks ago that i over heard while painting my garage (an experience that made me not envy the thought of having multiple houses to keep on top of painting) Seems like he's had pretty smooth sailing.
But yeah, sounds like a fun opportunity, huh?