My wife and I are thinking about becoming a landlord. Any tips?

Question

We currently live in and are paying a mortgage on a home that is right across from a home that is going up for sale. The owners offered to give us the option of buying it before they went to the realtor. It had been for sale and then came off the market and now the owners want to try and sale it again. I make good money and have excellent credit, but we barely can make ends meet as it is. I see it as a way to make some extra money. With the housing slump now would be a great time to pick up a home cheap and rentals are impossible to find. My questions are. Is there a special loan for buying a investment property? Is it profitable? The house has been totally renovated and shouldn't have any problems. Plus, it's small enough that it would be easy to maintain. I'm thinking if we did an interest only loan we could have small payments and get the most out of our rent and when the housing market picks back up we can either choose to keep it or just sell it and make a profit on that. Let me know some problems to avoid and if my way of thinking is to optimistic.

Answer 1

look up the rental market in your state.

i can say that florida right now is the number one state to rent in, and not because it is easy for the owner..

renting is a lot of hassel and negotiagion.

i would not reccoment it unless you alreay owned a property. there is plenty of other investmennts you could have with the same amont of money

Answer 2

Renting out a house is a royal pain in the butt.  I don't recommend it to you especially when you say "we barely can make ends meet as it is".  You are headed for big trouble if you buy the property as a rental.

Answer 3

Do not do it. Renting a house is expensive and if you are barely able to make ends meat you will be killing yourself by buying the house.  Once you buy it, you pay the mortgage even when the tenants skip out on you, and expect the first few to s***w you over before you find a good tenant.  Plus you have to fix all repairs and they can basically destroyy your house and you will be stuck fixing it.