A couple of things I like to tell my newbies-Owning a short-term rental property can offer significant financial benefits.

House hacking with an FHA loan is a great way to minimize living costs while building equity, or you could invest in an out-of-state rental for steady cash flow.

Some background:I got into REI to earn enough income from rentals to replace my W2.

million in addition to their investors (who expect a reasonable rate of return) by keeping the rental rates at a fraction of the market rate?

Focus on long-term rentals in affordable markets with reliable cash flow, and steer clear of high-cost flips, lower-class properties, or overleveraging in areas that rely solely on appreciation.Good luck!

Hi Dave,The topic is 2 years old which you might not have noticed.Closed at a 7 must have been urban core in a highly desirable area.I am seeing trade at a 9 here with no rent bumps in the primary term.For anyone wondering many tenants are credit tenants.There is a huge difference in that INVESTMENT GRADE tenants are BBB- or higher.The ones below that are considered junk status by many lenders which doesn't make them a bad investment just harder to get financing and more to put down.The dollar stores (there are 3 big brand companies nationally) with other smaller regional knock offs are okay as long as you are not buying in obscure rural locations.The fronts are usually brick facade and the sides are sheet metal.You second and third generational tenant will not have the same per sq ft sales they will leaving you with less of a re-rental return.Having said this I have seen some very nice all brick ones where the city required a certain architecture and look to approve the building permits and process.Those typically run 1 million in price to 1.2 versus the cheaper ones in rural areas at 500k to 800k.

That's the only thing that would change for me if I found out this information about a rental unless you want to change strategies altogether and flip it. 

How much income you'd want from the rentals and when you want that income to happen by. 

I am trying to hire a licensed REA for my LLC to perform occasional open houses and move-in/move-out inspections since I am out-of state from my rental property.I have the REA identified, now I just need to know the steps to creating a contract for them and me to sign.

Research local rental demand, especially from military and university tenants, and consider balancing your portfolio with single-family and multi-family homes.