Purchasing a second property for rental income in India is often perceived as a safe investment, but a reality check reveals lower-than-expected yields. Gross rental yields typically range from 2-3%, dropping to 1.5-2% after expenses like maintenance, taxes, and repairs. This net yield often fails to cover home loan EMIs, which are significantly higher. Furthermore, vacancy periods, which are common, can reduce effective annual yields by 15-20%, making it a business with considerable risks rather than a guaranteed income stream.