rental property

During housing boom a few years ago, many people bought rental properties because they thought the value would increase and they would end up making money when they sold the property. This was common practice even when there was a negative monthly cash flow, sometimes several hundred dollars.

Then, when the market crashed, many people lost those homes and decided never to buy a rental again.

Now that prices have come down to a more reasonable range, there are many areas where the rents will more than cover the mortgage payment, including property taxes and insurance. With positive monthly cash flow now a very real possibility in some areas, some of those people have jumped back into the housing market.

If you take a more in-depth look at the current market, these properties that will give a positive cash flow can give you profit in two ways. Not only do you get the monthly income but, since these properties will also increase in value over the long term, there is also profit to be made in that area.

So, even if you got burned by buying rental property at the peak of the market and swore never to do that again, it is worth another look. If you have the opportunity to buy something that will make you money, it certainly warrants further consideration.

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