Ready to invest in real estate?
I get this question a lot, mostly from people who are up late at night watching info-mercials or watching the latest people on HGTV make a fortune.
In our Charlotte NC metro market, the rental market has been soft right along with housing prices. If you're a student of markets, you will note that they do run parallel to one another. When folks are looking to be a landlord and add to a rental portfolio, there needs to be a slush fund available.
For planning: years 1 and 2 will most likely show a negative cash flow (you will have vacancies in between tenants plus your monthly rent may lag your mortgage if you didn't put a substantial amount down). In year 3, with normal rent increases, you should breakeven. By year 4, you should start seeing positive cash flow and beyond.
Timing is a factor as much as or moreso than the actual price of the unit. If you are looking for a quick buck, keep looking for options out there.



