With interest rates low, the economy still sluggish, and many homeowners that need to sell but are underwater on their mortgage, investors are looking for way to earn returns in the market, or at least not be forced to give up their home.
Becoming a landlord can be a great way for investors to make a lot of money, or just as easily lose their shirt. I bought my first investment property at 23 years old, and fortunately it was a successful endeavor. Direct real estate investing certainly isn’t for everyone. Here are some of the things I learned from my experience as a landlord:
It takes a lot of time
Being a landlord is a very time consuming job, and it isn’t a 9-5. Have you ever had a pipe burst at a convenient time? Be prepared to spend a lot of time managing your investment. Maintenance such as lawn care and snow removal, getting rent payments, and advertising for new tenants are examples of the major time-sucks landlords’ experience. And don’t think you can just hire someone to do all these things for you. Although you can, it will eat through any spare cash flow the property produces. Read more..