This story comes from https://www.inman.com/ by
"Out of all of the diversity found in the 1 percent — the most wealthy in history — the one common thread is that they owned real estate. Building a real estate portfolio and becoming a landlord can be one of the best wealth creation tools available. But, if you’re not careful it’s also one of the easiest ways to lose a lot of money."
That paragraph sums up all the wealth creation and how you can blow it also. Having done over 300+ rental properties I can say that the vast majority do well and their are a few that do not.
One of the reasons for failure in the investing business is not dealing with some of the properties details. Maintenance and property management is crucial to your success. I deal with this myself everyday on my own properties. I had a roof go bad on a property and had to replace it in Indiana. That was not fun but I had to get it done in order to keep it rented.
The home I have in Arizona is on a lease option and I do not repair anything. That property makes me a solid return monthly and is building a great equity position for my portfolio.
The investors that take care of there properties really benefit in the future. Every home will have it's repairs and problems that is why you always need to look at your monthly net.
5. Location success factors
Real estate markets are constantly in flux. National real estate trends might set the overall tone, but it’s all about local conditions. In order to secure long-term rental demand, you need to make sure you’re buying properties near sustainable supports — hospitals, universities, transit hubs, shopping and entertainment.
Identify up-and-coming areas. These are areas that are likely to see above market increases in value (net value increases more quickly).
Identify areas that are likely to see below-average increases in value. Take a drive, and these areas will become more apparent to you."
This is very important for two reasons it builds equity and you can usually get much more for rent. That usually gets you a better tenant and a longer term lease. I personally are in our cities and know all the sustainable supports that families want were they live.
Having your portfolio in the right areas is crucial for building a lasting portfolio. Brett Young Coldwell Banker and Rooftopinvestment.com