You're leaving out interest, unless you plan to do this as a cash purchase. Even then, you should allow yourself an interest factor for the use of your cash - when it's tied up in the house, nobody is paying you for using that money. Here's a handy amortization calculator that I like to use:

https://www.bankrate.com/calculators/mortgages/loan-calculator.aspx

Assuming for the sake of argument a 30 year $200K mortgage at 5% interest and no down payment (and ignoring any PMI/MIP that might normally be charged), the payment is about $1,073. The interest is over $800 per month for several years.

Termite service contract, lawn care ... if the tenant is supposed to mow the lawn, just wait for the notice from the city that you're being cited for an overgrown yard. If a realtor brings the tenant, you're almost certainly going to pay a commission or finders fee.

With all that said, if you can purchase a house for the right price, then renting makes alot of sense. Also remember to appropriately value your time spent on the property. One good rule of thumb someone taught me long ago is that your cost of insurance and property taxes should not be more than 1/3rd of your rent. So the example numbers you're giving would make sense.

Rental property worked out great for me. Bought the house for $65k cash in terrible shape. Gutted it and fixed it up on my days off spending a little shy of $40k. Rented it for 4 years without any major issues @ $1150/month. Sold it 3 months ago for $205k to fund another property purchase. I know there are horror stories, but it does work out sometimes.
I also think it helps a lot if you can do the work yourself. I worked for a land lord in Lubbock while going to school doing make ready and flipping homes and learned a ton. Good luck!

Meet with a gentleman weekly for breakfast. He owns 26 rentals in the $40-$80K range. Most of his homes are 2-1 or 3-1 and around 1100 square feet. He started with one house 11 years ago and when he had equity bought another. 12 of his houses are paid off and next year 2 more will be. He is always looking for new investment properties. His latest idea is a tiny home subdivision in a rural setting.

It works but there are issues that sometimes arise. He buys when he can make 10-20% on his investment, anything less than 10% return he will pass. I've learned alot from him but currently own only 1 rental.

I'm currently looking at VRBO or AirBnB type homes. Something I can lease to corporations or insurance companies for extended periods.

Just go to Fair park in Dallas or Stop Six area in Fort Worth. Pick up a house for 20K, put 20K in it and then get it set up for Section 8 housing.

They take good care of the property since they are getting free housing, and don't want to loose their vouchers

You have to think outside the box. A 225k house in Alabama, property taxes would cost you around $700 a year.

One tenant of mine is a school teacher, one a lawyer, one a retired colonel. Average time in house almost 3 years. I think if you get correct people renting and invest your money in decent areas that are desirable and growing you are gonna be fine. It's like any investment, there is some risk and reward. Go to stop six, get a property for nothing and then by some miracle find a good tenant you can make a nice return but like junk bonds or speculative stock you can get burned. Stick to quality areas and be highly selective on who you rent to and your percentages go down but things are alot more stable and predictable. If someone poured cement down the drains or cooked meth in your house you did it all wrong.

Back in the 80's we had 66 rental units, all leveraged to the hilt and had 80% LTV loans. It was a negative cash flow but we were looking for the high appreciation in value TX was experiencing at the time. The economy went south and we lost them all.
Spend some time learning the market in the area you plan to buy in. Buy an under valued house, fix it up, refill and rent it. Make sure your tenants understand your recourse if the dont pay on time, and it's not bad.

I have seen quite the opposite, they will move many into a house and basically destroy it. If you have a ghetto rent house then they may be a good fit.

I can do a lot of work myself, electrical, plumbing,etc. I worked for a housing contractor (uncle) for my teen years building new houses. But, I don't want to spend my retirement days working on them Good info though, thanks.

I was thinking instead of having $200K sitting in a savings account making 1.90% annualy, invest in buying a rental property. For income generation the return is higher on a rental property but from what everyone seems to be saying is that it is still a dice roll with headaches of bad tenants, etc. Thanks.

It's not bad. The insurance is less than that, the rent might be more, your maintenance won't be near that much most years. Property taxes may be more. You can always talk yourself out of making money. I generally wouldn't suggest financing one.