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The idea of buying a home or apartment to rent out for profit may sound alluring. But buying a rental property for income and long-term capital appreciationcan have its ups and downs. For example, the housing market can fluctuate depending on location, supply and demand, and the economy.

People also ask

  • Is buying a rental property a good investment?

  • Buying a house to use as a rental can be a profitable investment. Even if you and your spouse are still renting yourselves, it’s possible for your first purchase to be an investment property instead of your primary residence. Some people buy rentals before their own homes because the investment might be in a more affordable area …

  • Is a rental property business profitable?

  • That can make the difference between a rental property business that succeeds and one that struggles. Leveraging your property purchase by using other people money ?a mortgage ?can turn out to be profitable when property values increase, but that not guaranteed.

  • Should you rent or buy a house or apartment?

  • If, however, you own a house or apartment available for renting or lease, you can generate income with the property, and in some cases, end up with positive cash flow after all those expenses are paid for.

  • What does it mean to buy a house for profit?

  • Buying a house for profit means that you must calculate your estimated net income from the investment before you make a purchase.