If you are a real estate investor or thinking about getting involved with the rental market listen up: you should be ready to ride the highs and the lows. Just like anything else there are times when the rental market is at its peak and times when you will have to deal with losing tenants, etc. Simply put, you need to take the good with the bad.
Right now, many consumers are finding it difficult to obtain a mortgage. For this reason they are either staying in their rental or looking for a new one. In turn, if you own a rental property you may be making out big time.
But guess what? There will come a time in the future when the rental market softens because banks begin to lend money to those who previously couldn?t obtain a loan. This means you may lose your tenants and be faced with a situation in which you don?t have any cash flow for a period of time. Are you comfortable dealing with this sort of situation?
There is no denying that it can be tough to ride the ups and downs of the rental market. But if you are an investor or want to become one you need to realize that this is part of the industry. When times are good you will have quality tenants who pay on time and respect you and your property. But when times are bad you will have to fight to stay on track.
Even though the rental market is a series of highs and lows you can still make plenty of money by investing in the right properties. Do you have the stomach to get involved with the rental market?