I am trying to figure out if investing in rental properties is still profitable in 2024-2025, especially with high interest rates and expensive properties. I recently stayed in AZ and talked to the owner’s son who manages some trailers. He mentioned his mom owns three trailers and that he’s fixed them up. He’s been a millionaire twice—lost it and regained it. The rent was only $500/month, and there seemed to be little upkeep.
So my question is… is using credit a good way to fund my first rental property with little capital? I think starting small and using the rent to cover the loan is doable. The main risk would be repairs. Also, I’d likely need to hire a Property Manager since I might be looking out of state.
A mentor of mine mentioned using Section 8 properties, which could have higher rents, but I know the government has strict requirements. He’s successfully managing 50 properties with a similar strategy. Any thoughts or advice would be much appreciated!