We sold our rentals, one of the happiest days of my life when we closed on the last one. Rentals are the biggest PITA imaginable, with the possible exception of owning a restaurant or bar.
They're not bad if you buy good houses that will attract good renters. The last house I bought was fairly immaculate and in a nice, yet fairly low cost neighborhood.
I'll admit, it's a bit tricky to find a rental property that's low enough in price yet still decent enough to attract good renters. You have to keep an eye out for the right one.
I got a decent deal on one I bought in October. I paid a bit under $150K for it. With 20% down I'm renting it for 2X the mortgage payment. If I put it on the market today I'd price it at $170K.
Those deals don't come along every day, though. The market is so hot around here right now for any house under $300K that any with an appropriate price will have 5 offers on the table 24 hours after it's listed.
It's a big plus to have 20% down on hand. A lot of people looking for a nice, starter home (the kind that make good rentals) will have 5% to 10% down and looking for a FHA loan.
Sellers don't particularly like FHA loans. Someone with 20% in hand and planning on financing with a conventional loan will have an edge over those other 4 offers that are on the table.
Thinking you have a rock solid helper...
Yeah,...my wife is fairly obsessed with real estate stuff. She inherited the practice from her father. Being around her for 20 years has done a lot to clue me in on how it all works.
Real estate investments are for people who can't wrap their minds around the stock market. Stocks are complicated. Real estate is simple.
