Reply to I am considering buying a rental property. Talk me out of it.

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]I own some rental properties and one major con is is large unexpected bills for things that break, or just wear out over time, surprise tax bills, vacancies, etc.  So make sure you have a large cash reserve to spare.

Another is the time spent on it, even if you have professional management.

The big pro is the opportunity for returns far greater than index funds.

The Bigger Pockets website and podcast is a good way to start educating yourself.[/quote]

I have been reading Bigger Pockets for quite awhile now, it partly seems too good to be true to me.

Have you been successful as an investor?  How much time did your "learning curve" take?  Do you have a manager or do you manage yourself?  I am afraid of making a very costly mistake.[/quote]

NP here. DH and I have two rental condos in Montgomery County. One is cash-flow positive, meaning we make money from every rent payment because it covers the mortgage + condo fees.  One is not, we get enough to cover the mortgage + condo fees. Maintenance costs have been fairly minimal, as one was bought brand-new (as I bought to live in), and DH bought other for himself to live and basically gutted the entire thing. We have significant equity in the older property, some equity in the newer property.

We manage the units ourselves, but there's really not much to do. The tenants email us with questions from time to time, but rarely ever. We're fairly strict in our initial screening. This will really depend on where you buy - if you buy somewhere in NE or SE DC, you may want to have a management company and there's a chance you may have issues with tenants not paying the rent, etc.

Btw, condos aren't necessarily the best rental investments IMO. We just happened to end up with two because we were living in them. Single-family homes or townhouses are better. Where are you looking? 
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