According to HUD half a million lower income rental units are disappearing in this country annually. They are torn down for urban expansion, condo-ized and some just fall down. The reasons don’t matter much. The point is, they’re becoming scarce as hen’s teeth. First thing you know the Federal Government may start subsidizing landlords who own what’s left. Certainly that would make as much sense as paying farmers to plow their tomatoes under so they won’t flood the market place.
The risk of owning and operating houses is almost non-existent. That’s exactly what new investors need, no risk, besides there are plenty of other things to worry about. It’s very important to stay within your means financially and to purchase properties you can personally handle yourself. If you do that, you can almost write-off risk factors. Economical (cheap) rental houses and small apartment buildings will always have a waiting list of qualified tenants if you keep the properties attractive and ill good repair.
After deciding where I wanted to go with my plan and choosing inexpensive fix-up houses as my vehicle, I no longer considered other properties.. Shopping centers are high risk. Land speculation is more like gambling. Land can go for years without a payoff. Special-use buildings like airport hangers, bowling allays, auto factories and resorts can sink an investor faster than torpedoes can sink a row boat if the tenant vacates.