Every investor seems to think they have something figured out when they make the investment. I have known of real estate investors who seem to think they can buy, hire everything out, and make a profit. It seems those investors do not last long. On the other hand, investors who put in lots of sweat equity, and do as much as possible for themselves, seem to be more steady.
A very personal decision for sure, but nowis the best time at least in my area as rentals are short and expensive.
John, you certainly got that right. Investing in anything blindly or even just lacking in a comprehensive applicable skill set is not investing, it's gambling. Unfortunately, buying high and selling low is more common than not. If I were to look for the closest thing to a steal in real estate, I'd seek out distressed investors.
Richard, that does seem all too common. It may be the reason why the corporations like Silver Bay and Blackstone choose to exit the single family home rental business without great profit. For the average unskilled individual investor, something that's a little less "hands on" would be a better choice. I guess the person with the ability to wear many hats and enjoy it could do OK.
Bill, now's a great time to own income property, but the supply and demand pendulum swings pretty fast in the rental business. Rents and vacancies could remain strong for a long time, but that is often not the pattern. The relative illiquidity of real estate makes it difficult to respond to market changes quickly.
I have invested in real estate for more years than I care to admit. It has served me will and continue for many more years.
Joe, thanks for your comment and congratulations on your successful investment strategy. Would you agree with an 8% non-leveraged annual return as about average?
Like investing in anything, if you know enough about the product - and yourself, you should be able to make a competent judgment about your investment.
If someone is just thinking about how to "get rich quick" they should remember the stock market "tech bubble."
Some things are just smoke and mirrors.