Rental properties may not be for everyone. However if you love numbers and can slice your mortgage details confidently then tiptoeing to buy investment property can be a good (even fun!) experience…
Buying a rental is no different from buying a primary house to live in. The same numbers/metrics apply. i.e. your monthly costs are below the rental rates, the cost basis is positive/near positive today w/o accounting for appreciation etc.
This forum has more experienced folks who deal with investment properties. Here are few suggestions that has worked in the past – 1) research the prospective rental area thoroughly 2) don’t skip on repairs/ high value low cost upgrades before renting the place 3) set the rental rate slightly below market 4) don’t compromise on the tenant selection process 5) clearly state the terms and expectations
As a caveat the tenants don’t move out unless absolutely necessary, and this gives only brief opportunities to re-synch the rental rates to market.
Recently I watched the movie ‘One Week’ and a conversation about ‘true love’ resonates with buying rental properties. If one has to ask whether owning a rental is good then the individual is not ready to deal with the commitment of managing property. This does not necessarily mean owning rental is bad for the individual, just that it is back to the drawing board for reassessment.
