Return on Rental investment
Rental real estate investment is generally not for the lazy or faint of heart. In order to show signifigant profits you need to "buy low and sell high" . One investor that I financed for years would often sale " don't fall in love with the real estate" remember the objective is to make a profit.
Almost all real profits in RE are made when you buy not when you sell. Many amateur investors also make major financial errors buy making modifications and upgrades which will not improve ROI and will not provide any additional return on sale. Even in the previous few posts you can see that many investors spend a good bit of time working with the physical and business aspects of their property. In most cases , if the return per hour is calculated it is most probably below minimum wage.
Other areas of concerns are adequate liability insurance to protect that nest egg that you now depend on , replacement reserves (a new roof can cost $6 to $12,000 -or more), etc,etc,etc.
Finally, what would be the magnitude of the no or low risk return you could derive by investing your equity some other way.
Not trying to talk Villagers out of investing in rentals just hope they will fully understand the transaction and ongoing issues before buying.
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