Buying remote rental property

My husband and I are in our late 30s, beyond the 40-percent tax bracket, own our home and earn more than $40,000 annually. We have numerous investments. We have considered rental property in our small community and believe it would be unprofitable. Would it be feasible to buy a house to rent in a larger city and have a real estate company manage it? What about high interest rates? E.F.

Buying rental property does more than yield income, as the depreciation shelters a portion of your income. Buying income- producing property can be feasible even during these times of high interest rates, but more important is the property itself -- price, condition, rental-income prospects and your management.

I'd suggest looking again at the prospects of buying in your community. A less profitable potential could still mean more income compared with a big city rental managed by someone else. Remember -- if the management talent you might contract for was effective, they would be managing their own properties. If I were you, I would prefer to manage my own local property.

You've read  of  free articles. Subscribe to continue.
QR Code to Buying remote rental property
Read this article in
QR Code to Subscription page
Start your subscription today