Ensuring a solid lease agreement and security deposit will help mitigate this.

Purchase price: $187,000 Cash invested: $15,000 Sale price: $259,000 I got tired of moving place to place and worrying about finding roommate, security deposits and not having enough money to deal with maintaining someone elses home.

Purchase price: $187,000 Cash invested: $15,000 Sale price: $259,000 I got tired of moving place to place and worrying about finding roommate, security deposits and not having enough money to deal with maintaining someone elses home.

Earnest Money DepositAnd if you want to cover all your bases, you can also consider saving for an earnest money deposit (EMD).

You have to adjust your expectations to match current reality, which includes higher mortgage rates, higher prices, more expensive taxes and insurance, more competition, etc.

For example, I used an FHA loan (3.5% down) to purchase a 4-unit property, which allowed me to put down a low deposit while still generating strong cash flow from multiple rental units.

They batch the deposits together and you have to go deep into the program to determine which tenant made the payment, that was deposited into your account.

Consider all the things that could go wrong and see if the lease addresses them: unauthorized pets or tenants, early termination, security deposit, lease violations, late rent, eviction, lawn maintenance, parking, etc.5.

This is almost an exact match to how I'm investing.This strategy isn't talked about on BP forums as it goes against what many investors believe when it comes to good markets.

I tell people if they can match their current rent or do better then it's likely worth it, but you may need to get creative on the cash flow part if you only plan on living their a year or two.