Investing in a rental property can be a great way to make big profits. Many Americans are choosing to rent rather than buy, and that trend is showing few signs of slowing down. If you have the means, buying a rental property can allow you to profit from rent payments. At the same time, you’ll hold a valuable asset that—with a little cooperation from the real estate market—could grow in value over time. With real estate investments outperforming stocks at the moment, it seems like a great time to look at rental properties as investments.
But be careful: rental properties are not foolproof get-rich-quick schemes, nor are they easy maintenance-free projects. While investing in one can often be an excellent idea, a rental property is something that you should buy only if it’s a good fit for your personal and financial situation. Here are a few things to consider before …