Risks in Real Estate Investing or being an landlord.
Nothing is guaranteed in life!! We are all human and things will happen. So just read below and have a great day! Smile.😀
No guarantees on money received, returns on investment , property conditions. You must take the good with the bad.
The below will go over some things you may encounter.
Any real estate book on the market should cover most.
When buying a property that may be 100 years old like most properties in the Hagerstown market you must budget for repairs and maintenance cost because those cost will never go away. No matter if buying a “Turn-key Property” or not. You can always get a home inspection to confirm the condition of the property.
When starting your journey as a real estate investor or landlord you must know that Tenants are like all humans and may have problems with payment or the way they may take care of the property. Buying a “Turn-key” property or buying a property anywhere you may encounter these types of problems.
While thinking of investing into real estate also take into account that you may encounter periods of vacant units or what is called tenant turnover. Tenants may leave at any time with out notice.
These periods may require you to make capital improvements with the possibly of no rental income coming in. This is why it is so important to budget for these issues.
Property managers or Property management companies will also have the same problems with tenants as you would as an individual.
You must be very active when it comes to investing into real estate. Like all things in life you must not rely on others to make sure your rental property is performing.
You must educate yourself to know the local market conditions and the risk that may be involved.
Any investment into real estate you may lose money including the principal amount. This is why due diligence is so important.
Taking this all in you must know there are a lot of great things real estate investing provides.
I hope this information was found to be very helpful.
It is always best to seek advice from professionals such as a attorney, accountant, or your financial advisor to make sure real estate investment is a suitable venture for you.
Well if that did not make you run for the hills you may be ready to start your journey as a landlord.
This journey has changed many lives in the USA and other countries.