Is Rental Property Investing Considered Risky?

Rental property investing can be considered risky for a number of reasons. When you've invested in a home, you are responsible for the mortgage regardless of whether or not you have renters in the home. If there are no renters, you may be costing yourself money instead of making it. If you have renters in the home, there isn't always a guarantee that they will be able to pay their rent, there again, making you responsible for any mortgage payment and removing any potential profit there was to be made. If the renters cannot pay their rent for an extended period of time, you may have to spend money on the legal proceedings to evict them from the home, which could take months, and more money than most people are willing to spend, depending on the state you live in.

If you have renters who are responsible and pay their rent, you may still run into costs of having to fix things. As the landlord, you are responsible if something breaks, and depending on what this is, you could be setback thousands of dollars in repair costs which will take awhile to be paid back through the rent you receive. 

If you are financially stable enough to be able to handle these potential costs in spite of what happens with the renters and the condition of the property, it may not be as large of a risk for you.

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