Is Now a Good Time to Become a Landlord?

I’ve been a Landlord for several years. I wish it was a positive and profitable endeavor but that really isn’t true. For the most part, we have found some great tenants but just one bad tenant and horrific experience can make you wish you never bought that investment house – especially when you are just breaking even on a property. That just doesn’t make sense.

So here we are at the tail end of 2010 with real estate prices as low as 2002 and 2003 prices; it just may be the opportunity most investors are looking for. No one becomes a Landlord because it’s fun or because they have nothing else to do. It either happens by default (can’t sell a home) or because the investor sees a financial gain at their fingertips.

Well, the financial gain of being a Landlord may just have arrived. The prices of condos and small homes in the Tampa Bay area have come down so significantly that it is making good sense to buy one of these now and rent it out. Take this example. If you buy a condo or a home for around $50,000, you can most likely expect to get $700 to $800 a month in rent. At that amount, payback with expenses could occur in less than 10 years. Whether you pay cash or you finance the loan, cash sitting in the bank today will never give you that return.

With interest rates and property prices very low, depending on your situation, it might make sense for you to become a Landlord. If we can help you find an investment property in Tampa Bay, please let us know.

5 Replies to “Is Now a Good Time to Become a Landlord?”

  1. Being a landlord is definitely not for everyone. Sure, it can (I emphasize the ‘can’) be profitable but the heartaches can diminish your morale. And well, I would encourage any would-be investor to take all factors into account (i.e. vacancy rates, maintenance costs) before entering into real estate investing (specially in a buy-and-hold strategy).

  2. I’m sure lots of us have regrets about selling something. I know I do. I’ve owned 3 homes since moving to the city and the first one is the one I wish I had kept as investment property. It is located in one of the best neighborhoods in Austin, but when I purchased it, the prices were low. Even now, with home prices somewhat deflated in Texas, it’s still worth about four times what I paid for it in the early 90s. If I had just rented it out instead of selling it! I think becoming a landlord would have been a very smart move.

  3. I agree with the lowering of condo prices (North American wide) – and the opportunity it presents. I think an individual needs to truly respect the amount of time that can be involved keeping a property rented, and maintained… above and beyond the cost. If time is something you have, the monetary gain can be great. If time is something you cannot spare, it can be an enormous headache! Great post.

  4. With the historically low interest rates today, it just makes sense to purchase real estate for rentals. Many people cannot buy today so owning rental properties is an excellent investment.

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