ment?
2007-03-21 13:25:52 · 5 answers · asked by Robert O 1 in Business & Finance ➔ Renting & Real Estate
Today, Yahoo published an article on hot and cold real estate markets. If the market is considered a hot market, then investment property might be a good idea if you have the capital to afford a house that may or may not rent for the long term. You always want to ensure that rental property will pay for itself.
I would also strongly suggest hiring a property manager that has experience. A property manager can be your rep when you are unavailable to collect rents and/or handle issues that arise concerning the property.
Also, I would advise visiting the property periodically to ensure that your investment is being properly maintained.
That's my take on the situation.
Ask, find out if property values are rising in the given area. Remember only fools jump in, wise persons investigate and do their due diligence.
All the best!
2007-03-21 13:34:51 · answer #1 · answered by TygerLily 4 · 0⤊ 0⤋
The short answer, NO! Not for your first house.
Rental or investment houses requires expertize and I would suggest you cut your teeth on local properties.
Usually those investors who are absentee landlords, have purchased those houses locally then moved.
I have made a living purchasing houses from absentee landlords. Managers mostly care about getting them filled, not who lives there. If damaged, the managers charge 10% of the over all costs for overseeing the repairs.
You have to keep a very tight reign over your rental properties whether they are local or not.
If you invest in commercial property, that can be another matter. Tenants usually expect 4 walls and a roof, and that is it. The are responsible for what goes in it.
Usually a commercial manager charges less than a residential manager because the headaches are less.
Good Luck.
2007-03-21 20:45:01 · answer #2 · answered by A_Kansan 4 · 1⤊ 0⤋
Do not purchase your first investment property out of state. You won't know the market. You won't know the property. You won't be able to easily repair things, nor will you be able to easily deal with problem tenants.
Purchase an investment property near you and wait until you feel very comfortable working with investment properties before you branch out of state.
2007-03-21 22:05:27 · answer #3 · answered by Wango138 3 · 0⤊ 0⤋
I have friends who have done this. They live in CA and bought homes in Texas, Washington and AZ. Some were good investments, some were terrible. You should do research in the area before making that decision.
2007-03-21 20:32:54 · answer #4 · answered by sandibum 5 · 0⤊ 0⤋
No, specially if you are not around to watch it.
2007-03-21 22:15:02 · answer #5 · answered by wazup1971 6 · 0⤊ 0⤋