Quote:
Originally Posted by TheTimeTraveler
It's all about numbers and returns. If the numbers work then some consider it a worthwhile investment.
Personally? I don't think I would sleep very well at night.....
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It's your return on equity and potentially a major tax write off in depreciation against your earned-income while also getting to use the property (there are uhhhh, IRS restrictions).
I've owned rental property in San Francisco for 40 years. Never a problem so severe I could not handle it while 3,200 miles away. The key is great tenants (proper screening) and a good building in a great location. And a reliable stable of contacts to do repairs, is a must.
Establishing a WOW! factor upon first sight creates demand and competition when showing the units. I've worked with a lot of landlords who owned Sect. 8, etc. in marginal neighborhoods. The rent is guaranteed but the wear-and-tear is more severe because Sect. 8 people are home more often, even during non-COVID times. More tenants per/unit. Usually less educated. However, choosing and screening wisely, it's a great deal.
Short-term rental is handled differently. The ability-to-pay is not the issue since most rent is paid ahead of time. The problem becomes spotting potential behavior problems...Loud partying, unwarranted guests, pets, etc.