This market is creating more and more default landlords. This seems to be the sign of the times.
What is a DEFAULT LANDLORD? Here are a couple of examples of a default landlord.
1. About two years ago I brought a house on a large lot because I wanted the land to subdivide. After I purchase the property, the market pulled back and made the development not financial viable. So I have a house I can't sell because I can't afford to finish the development. So I'm a default landlord....
2. My son and his family had to move because of a job change. Unable to sell the current residence without doing a short sale. Trying to maintain his financial commitment he made when he purchased. He has decided to rent his home and is now a default landlord.
I know how to manage property and it's just not my bag. I only do it by default. I think I know what not to do when managing property. It seems like I have done everything wrong possible, so by avoiding all the past mistakes I manage to do more things right. I seem to learn the hard way.
My concern is those who jump in the rental business as a default landlord, not really knowing all the risks and hazards. Can be in for a very hard landing. That's why I strongly encourage inexperience default landlords to hire the best property manager they can find.
We will never have 100% homeownership for many reasons. That means we will always need investors willing to be landlords and many will be successful. Those choosing to be landlords, I would prefer to see them make an informed choice to become an investor, not become one by default. Making forced (or feel like you're forced) decisions and/or quick decisions usually have negative results.
There are many sound investment strategies. Learn them, use them and refine them to your style. Learn from your mistakes and never stop learning. Your odds of being successful will greatly improve and who knows you may become the next investment master.