I did that from 2002 until now, though I'm shutting down. It was a decent source of income, I could've made WAY more and probably made a good living, but I never charged people enough because many of them couldn't afford to go anywhere else. It was a great hobby and it got me my current day job. It was interesting work, but the internet has become too dangerous, it's impossible for one person to keep up with all the attacks.
Similar story over here. I started by offering shared hosting with supervision as added value, expanded into reselling VPS'es and eventually leased bare metal servers that I partitioned into VPS'es. I could have made a lot more money if I didn't treat every customer with utmost care and attention. Now I'm stuck with clients that can't afford to go elsewhere and clients with grossly outdated software that would be a nightmare to migrate. I kinda miss the passive income although there wasn't much. On average I had to fix something every few months and would get a major outage/bug once per year. I always hesitated that scaling up would result in more customer support work, more major outages and more everything that would take the "passive" out of passive income.
Sounds familiar! I really did enjoy the work and helping people, but I could never find anyone to help me, and it's a 24/7 thing. I have basically never been offline since 2002. There's been a few exceptions, but I'm always on call. It's been a good ride, and I know I'll be sad when I cancel that last server next month. Let me know if you need help, I'm available now :-)
