Using credit to fund a rental property... is it a good idea?

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!

Using credit can be a good idea if you do your homework. Just make sure to factor in all costs, including repairs and management fees. It’s all about the numbers!

I think starting small is smart! Just be careful with interest rates. They can eat into your profits if you’re not careful.

Definitely look into Section 8! It can provide stable income, but just be ready for those regulations. They can be a bit strict.

Have you thought about local markets? Sometimes you can find better deals with less competition. Check out areas where prices are still reasonable.

Using rent to cover the loan sounds feasible, but don’t forget about unexpected expenses. Make sure to have a buffer!