You have enough useful info. below to work with. I have done this same thing many times personally. So, my advice to you is; to treat it like a Business and make Business discissions regarding your property and its management.
A property management Co. maybe a useful consideration. Personally, we have developed our own philosophies and strategies that we follow. It's Not a perfect science, but it is a Business and it will not tend it's self.
If set up and managed properly, the up side is substantial!
Best of Luck to you!
Read this: http://www.trulia.com/voices/Home_Buying/BIGGEST_Rental_Boom
Brian is right, it can make sense in any market if the terms on the specific home are right. Investment property financing has different requirements than primary residence. My first recommendation would be to make certain you have the down payment and qualifications for an investment property mortgage.
Once you have this, you'll know what your minimum initial investment is and approximately what your payments will be. If you can cash flow an investment home in an appreciating market it is easy to justify. If your market is flat or still declining, you need to plan long term and be willing to ride it out.
Being a landlord is a part time job. I ask all my potential investor clients if they are prepared for maintenance calls, prolonged vacancies, handling tenant screening and possible evictions.
You need to become intimately familiar with landlord tenant law to make sure you are aware of your obligations and limitations.
Real Estate investment can be a good option for many people, but do all the necessary education before you get committed and work with an agent who has experience with buying rentals and can document rents in the area. Best of luck.
Colorado Springs market is much like the Texas market from what I have heard. Prices never really spiked, and they never really crashed so recovery or appreciation will be more modest than in some areas. Of course, no one has a crystal ball and even a Realtor can't predict the future!
If you have never had investment or rental property before, I would make sure that you spoke with someone that did or speak with a certified property manager. There can be a lot of little things that you don't think of when it comes to rentals. Make sure you know what you are getting into before you get into it.
Investment and Rental properties can be very good sources of income, but they are not for everyone.
Best of luck to you,
Because it's more than real estate. It's RAYL-Estate!
Brian Rayl, REALTORÂ®, e-PRO, SFR
Keller Williams Elite - Park Cities
Typically I put 20-25% down depending on the lender to avoid PMI, and then like to see at least a 20% return above the mortgage payment. This will ensure 2 extra house payments per year should I choose to use the profit in that manner. The formula depends on your security and what makes you comfortable. Powers is a great area to own a rental, and with all of the troops coming in it should be easy to fill in the coming months.
Please let us know if you need any help. We provide free buyer representation and a 1 year home warranty.
Kevin & Jessica
Higher Living Team