Housing prices continue to go through the roof. According to one report, the median price for a home in the United States rose 14.7 percent over the previous 12 months. A hypothetical house with a typical 80 percent mortgage would have given its owner a 73.5 percent return, with such price appreciation.
Real estate has done so well that many people would like to be landlords. Good buys may be found in three or four-family properties; at today’s prices, it can be difficult to make money with a one- or two-family rental.
For any type of rental property, finding good tenants is critical to a landlord’s success. If you own rental property, see if there’s a nearby medical school, which can supply you with tenants. Medical students generally can afford to pay decent rents; they’re usually not at home, so wear-and-tear may be minimal; and when they are around they’re either studying or sleeping.
