Competition to rent is at an all time high. It seems like the average house for rent stays on Craigslist about a week or two before it’s filled. Why is that the case? People are still scared to buy a house in a weak economy, but maybe a shift in focus will change your mind.
While we understand the concern, we think that fright is irrational for most people at this point. As long as you have a clear plan in place for your house and finances, you should aim to buy a house. But, with competition for rental units so high right now, why not buy an “income property, ” i.e. a house that will bring in money.
Income properties come in all shapes and sizes. You can buy a house with a garden level apartment or you can buy a duplex or, you can even just rent out a room in your house. It’s up to you to have the vision for properties you find in your budget.
However, there are further steps you can take to shape your vision. Check out Craigslist or Padmapper and see what rental units in your area are going for. Compare that with your mortgage and see how much an income property could help.
One thing to consider though is that you will be a landlord. That means you are responsible for keeping up the house and fixing things in your tenant’s living space when they are broken. Are you up for that challenge? If not, consider hiring a management company to take care of the dirty work.
Weigh the benefits and negatives to owning an income property and see what works best for your family. An income property could be exactly what you need.