Is it hard to find a rental property that will cover it expenses?

Question

Is it hard to find a rental property that will cover it expenses?
Ie - interest on the loan & property taxes & some maintenace

Answer 1

Duh if you were a Realtor and had a place for sale that made money like that would you sell it or buy it?

Answer 2

depends on where you live and how good your credit rating is

the higher your credit rating the lower your interest rate

rentals have been a tough business where i live for a while due to rising housing prices and lowered qualifying standards, so mor epeople buying, less renting

recently the subprime market is drying up though, so just try pricing houses, get pre qualified to buy and find otu what interest rate you qualify for.

then compare that to rental rates in your area.
maintenece varies a lot depending on the age of the building and whether you are doing it yourself or subcontracting. if you have a friend or neighbor that needs work it could be a good deal for both of you to hire them.

lastly, consider buying a duplex. you will have a little more work keeping both rented but you will generally make more income per unit and your eggs will not be in one proverbial basket.

more than that is considered commercial property and the rules change, here in cali at least

can make great profit though if you have the capital to invest it and cheap type labor or time to do it yourself. I tell people to hire someone because it is frustrating seeing your property because others will never care for it as you would.

either way, the key is to screen your tenants well, because deadbeat tenants drain your resources quickly, and can damage your property. demand a credit check and check rental history, just advice from a professional property manager

Answer 3

That really depends on the property and where it is located.

Keep in mind that if it's fully a rental property, then you can deduct nearly everything (maintenance, etc.) as a cost of running that property, so it'll limit the taxes you have to pay for the income.

Answer 4

yes- everyone think real estate is a cash cow, but it's the cashflow part that will kill you. One or two vavcanies and no cusion will have you eating away at equity (if ther's any there) to make operational expenses (maint. interest, taxes, legal etc.)- otherwise you'll be forced to sell at a discount
No free lunch...ever. In that market your money is made when you purchase at the correct price and have enough capital to withstand a hiccup here and there.

Answer 5

Also known as a cash flow positive property.

Yes, they are hard to find. If they were easy, everyone would be investing in real estate.

Most of the cash flow positive properties I own are made that way through the structuring of the investment. You will certainly be hard pressed to simply find one listed in the real estate section of your local newspaper!

Answer 6

try a foreclosure