Friday, October 5, 2012

Why Be A Small Landlord?

Many smaller would-be landlords are considering buying rental properties as a means of making better returns from investments.

Diversified corporate bond funds of lower credit ratings, but without outlandish credit risks, still offer decent yields, as do REIT mutual funds, which invest in real estate equity trusts.

Still, individuals who are familiar with small properties may find bargain real estate that will offer a decent return and capital enhancement.

But there is a danger in holding real estate on a small scale. It may derive from local regulations which you should know intimately. And you must be prepared to do most of your own small repairs, which can be costly when assigned to outside mechanics. (See the Earl J. Weinreb NewsHole® comments.)

No comments:

Post a Comment