Buying rental property is a great idea, especially in this market… the prices are great and with the super low interest rates it can be very affordable. In the past with the higher housing prices it was hard to get the rent to cover the payment/expenses. This has changed in many areas with the prices being as low as they are right now, it can work out to be a very sweet deal.
Many people are looking to rent a house because they have lost theirs to foreclosure or a short sale. So, the demand for rental homes is good right now. I bought my first house with the intention of living there, but then figured out that I could rent it out for pretty close to the payment. This was a good thing… it has turned out to be a wonderful investment. I still own that same rental house today, 27 years later.
I always felt that buying a house as an investment was better than buying an apartment building. You only have to deal with one tenant at a time. Many tenants who rent homes, seem to want to take good care of it – especially, if they were homeowners before.
Anyway, food for thought… maybe you should invest in your future too and buy a rental house ! It’s like money in the bank.