An investment in rental housing is a very good idea, as long as you:
1) Do your homework and know the area you are buying in and the rental values
2) Realize it is a long term investment
3) Have a tremendous amount of patience to deal with tenants, as they can be trying
4) Have a list of repair people that can help you…at a reasonable price, 24 hours a day. Your best friend is your maintenance guy!
5) MOST IMPORTANT: Make sure you have the funds to cover a property without a tenant/income for 2-3-4 months and pay for unpredicted expenses, such as a new refrigerator or air conditioner. So many owner’s get into a bind, innocently, as they didn’t anticipate the tax bill, insurance, the need for a new appliance, etc. while there was no rent coming in.
A seasoned investor anticipates a 10% vacancy factor into a rental property, which is usually a very high percentage, but it is a buffer.
As I stated previously: Rental property can be a very advantageous investment…just make sure you have the ‘bucks’ to cover it.
Now is REALLY a great time to buy a rental property.