Many people view real estate as an excellent source of passive income. Once you put up your initial investment – in other words, once you buy your rental property – all the rest is just gravy when your tenants start writing you a rent check every month.
While some people have had significant financial success with becoming a landlord and managing rental property, there are some pitfalls that you need to be aware of before you jump in feet first. Often, having a rental property is anything but a passive income source, and there are some costs involved that you may not think about until you’re hit with them.
It’s best to fully understand the responsibilities, obligations, and downsides to this new venture before you invest in a second property with the intention of turning it into a rental unit. Check out these 5 things you need to know before becoming a landlord: [Continue reading]