Yikes, that sounds all kinds of awful! 1) The rental income is not high enough. There are a lot of costs to consider in addition to mortgage, including property taxes, insurance, vacancies (10% of rents), repairs (10% of rents), property management, snow removal, lawn care. Also possibly utilities (unless all separately metered) and possibly hot water heater rentals (unless owned). 2) Even if the income was high enough, you should start out small if you have not tried real estate investing before. If you decide you don't like it or it's not for you, the costs to get out of this deal are too high (especially considering currently inflated prices). 3) Similar to above, don't go into this with another bunch of newbies. There is no guarantee any of you will like it/be comfortable with it. Save the partnerships for later, once you have started small and established that this is something you are interested in growing, and even then you should probably avoid partnering with friends. 4) There are other places in Ontario where the numbers are much better. Don't start in a red-hot real estate market, the second highest in the country.