Buying foreclosed, or otherwise inexpensive, residential units with the game plan of renting the property for as many years as it takes until real estate appreciation returns has proven to be a time-tested and generally successful investment strategy. Unfortunately, it's not as easy as it appears. Just because a residence, whether a condominium or a single-family residence, can be acquired cheaply doesn't mean that a home-rental scheme can be operationally profitable. It would seem that with so many foreclosures and REOs (bank-owned homes) on the market that now is certainly the time to make an investment in a rental property, and many experienced investors are plowing through bank auctions with vigor. Those folks I don't worry about. It's the novice investor and those new to the...
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