Is a Rental Home a Savvy Investment?

Many investors flooded the Las Vegas market with cash and high hopes. Many didn't ask the right questions about the market and about investing in a home before they got started. In fact, some are up side down because they jumped at something without thinking it all through.

Investors should ask some questions before they decide to buy a property. A skilled real estate agent can help in the decision making process. Here are some questions for starters:
"What you really need to ask is: Will the rent receipts cover mortgage payment,
lost income from cash you invested, property taxes, property insurance, say a 5
percent allowance for maintenance and repairs and another 5 percent for
vacancies or uncollected rent? Add in something for the cost of your own lawyer
and tax professional, because as an investor, you should use both right from the
beginning." - Las Vegas Review Journal

Much of Las Vegas' slower real estate market and foreclosure rate is based on the decisions of investors who were not savvy in their choice of home. Make sure your agent will get you pointed in the right direction before jumping in.