Interest rates are near historic lows. Home prices in many markets have not been this low in a decade. The US stock market is crazy and Europe's looks even more out of whack. Your smart, savvy, and think that now may be the time invest in a rental property. Well...Bankrate.com's recent
Debbie Downer of an article may have you thinking twice about your decision. While this blog is geared for real estate investors, it never hurts to take a step back and determine whether you are a good fit for becoming a landlord. Bankrate.com's author, Pat Curry, notes that vacancy rates are up (note..this may date the article a bit since rates are down in many places) which can lead to stress and opening up your own pocketbook to meet your monthly mortgage obligations. Mr. Curry also points out that applicant credit histories are getting worse. Considering the tightening of lending guidelines, less people are qualified to borrow money. This fact has pushed more people with less than stellar credit into the rental pool. Evictions and dealing with tenants who owe back rent can be a nightmare. Plus, the down payment for
investment property loans is now considerably higher than it was just five years ago. Still ready to take the plunge?
For more on the article, visit:
http://realestate.msn.com/article.aspx?cp-documentid=20619924
Other Helpful Posts:
Is Being a Landlord Right for You?
Fannie Mae Investment Property Guidelines
