There are a lot of pluses to owning rental real estate: diversifying from the usual investments of stocks and bonds; offering an alternative stream of income; and creating a potentially scalable business. But there are challenges, too — it requires capital, a time commitment and dealing with tenants.
“Real estate investing is not for the faint of heart,” said Robert Dolan, owner of mortgage broker Capital Financial Group in Winnetka.
Real-estate experts said people who want to get into the world of owning rental property need to consider a few factors.
Do the research. Homeowners know each piece of property is different, and values can vary greatly based on neighborhoods. That’s even more so when looking at investment property, so closely review rents at comparable properties.