I agree with Shawn, rentals are not for everyone but I find that most often folks assume it’s not for them before they every try because they have heard all kinds of crazy horror stories.
Those horror stories are rarely first person accounts… always my neighbor’s bosses, friend’s cousin etc.
The reality is renting is a business and if you approach it otherwise and don’t follow the landlord tenant laws, you will have horror stories.
As for making money with rentals, think about how many people make a living renting real estate. Think about Lonnie Scruggs and his story. He was a landlord for 20 years BEFORE coming up with his mobile home investing ideas.
Read the millionair next door. I believe it is page 9 or so where it talks about the type of businesses they really own (not what you might assume they own). Guess which one they mentioned…mobile home parks.
I know several prolific house “flippers” and even they own rentals eventually to reduce their tax hits, increase their net worth and provide for their retirements.
Edwin, I am not trying to convince you to be a landlord. It matters not to me if you choose to own rentals or not. Only you can decide.
As for your belief that REITS are the litmus test for good investing I could not disagree more. REITs to me always bring to mind Wall Street money trying to act like players in real property arena. Wall street investments seem to work on paper but to me fall short of truly understanding the face to face, people realities of landlording.
Take a look at some of these huge park investment pools that buy up parks all over the country at prices no one investor would be willing to pay, they jack up the rents hundreds of dollars per month and wonder why their vacancies are out of sight. That idea may have sounded good on paper but it was a short term gain followed by a long term problem.
Would you invest in something just because a huge, money banked company decides to do so? How could you begin to approach it the same as they do? Two totally different animals.
Why would I rent trailers Edwin? Easy. Look at the folks making a living investing in stick built rentals. Most spend many, many times the money to buy a stick built home that I buy a land/home property for and yet I cash flow better, have less overhead (lower risk) and appreciate and I still get appreciation to boot.
Less money at risk, better cash flow, lower overall risk, lower debt risk, appreciation and by renting (in most states) I get the use of the landlord/tenant act to quickly evict (if you play by the actual rules instead of self help evictions or listen to someone instead of knowing the rules yourself)…why would I NOT rent trailers?