If it's way out of whack with the market average, dig deeper.Debt Service Coverage Ratio: Key for nderstanding if the property's cash flow will cover financing comfortably.Historical Vacancy Trends: Especially in areas like Chicago, where local job markets fluctuate, knowing vacancy trends can help you anticipate rough patches.Rent Growth vs.

The article also fails to mention that overall transaction costs can actually be higher in countries where commissions are lower because the agent plays a different role, and due to needing to pay a lawyer for paperwork that agents complete here as part of their job (called a solicitor in Britain) plus VAT taxes and other closing costs need to factored in on top of the sales commissions, which we don't have here, overall costs can actually be higher even if commissions are lower. 

Otherwise, you can never attain financial freedom because rents will not outpace inflation.How long your rental income lasts depends on job growth in the investment city.Non-government jobs are inherently temporary.

My own personal experience is that a huge stressor has been lifted since I've stopped spending hours looking for and analyzing deals and my index funds/stocks are doing well (just hope it doesn't decline in value when retire from my W2 job). 

Martin the property management argument isn't really an argument if you look at the bigger picture that most investors don't want to manage their properties anyways because they are spending most of the time on their main job.

Great job James, cheers!

Also, focus on 2 years of job/income stability.Class D Properties:Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciationVacancy Est: 20%+ should be used to cover nonpayment, evictions & damages.Tenant Pool: majority will have FICO scores under 560 (almost 30% probability of default), little to no good tradelines, lots of collections & chargeoffs, recent evictions.

Many first time investors don't realize that by getting into the management they are getting another job.  

I left my job earlier this month with the intent of retiring -- not so sure how that's working out as now I'm interviewing as I feel like I'm not being productive (this is an entirely different beast).  

I like the idea of diversification of my investments and I love the strategy BAM has articulated: the focus on properties with below market rents in growing areas with jobs and good schools.