Agree with answers so far. I think many people believe that there is more to it – that either it can’t be as easy as it seems, or that it’s TOO difficult/risky. The truth is somewhere in the middle. The naysayers can be stubborn as hell about it, too – wifey was in that camp but I convinced her. We’re pulling the trigger next month, probably Orlando. Phoenix suburbs are actually still a decent buy.
I know a lot of part time landlords. If you ask all of them what their experience has been, the ones who give a glowing review of landlordship are the ones who bought at a good price and rent below market. The ones who warn you not to do it bought during the peak and think they have the best house in the neighborhood, which is their excuse to price it too high, which results in bad tenants (the good ones are getting a better deal from the aforementioned happy landlords). If you get a landlord story from someone, good or bad, get ALL the details.
Of course I look at the rate of return, but never count on appreciation. That’s just not the point – income is. I like to view the entire rent as adding to it. Someone else will buy me multiple properties – paying the PITI and maintenance for 30 years and then funding my retirement (not to mention my primary residence, the kids’ college, and all our car payments).
