Investing in real estate to generate income from rentals properties is a pretty popular idea here on Guam. With the rather generous military overseas housing allowance paid to service members for rental properties, the numbers look pretty attractive. Over the past two years we’ve had quite a number a number of active duty military investors that purchase homes with plans to rent out when they leave.Should you hop on the bandwagon?

Before you do consider investing in real property for income purposes, there are a few things you need to consider before moving forward.

Do you have enough money for it? – When it comes to investing in real property for income generating purposes, it means that you should purchase homes with this particular purpose in mind. Invest in something that’s going to appeal to your target customer so that it will be easy to rent out to keep the money coming in. While you might have the money to buy the property, you should be aware that your expenses do not end there. There are other expense that come with being a landlord, and these are costs do not stop when you buy the place. Repair costs, maintenance costs, taxes, insurance, renovations, and others, they all add up.

Do you have the patience for it? – aside from the financial considerations, you also need to deal with the people who will end up renting your property. This means that you will be facing people that may be great to work with, or the exact opposite. There will always be troublesome tenants every now and then, and as a landlord, you will need to face such obstacles. Some tenants may cause problems with the rent, others may cause issues with utility bill payments, and a few more may be a headache to their neighbors, which will also fall on you to resolve. You might even find yourself needing to evict tenants when they prove to be really troublesome.

These are but a couple of the issues that you need to consider when thinking of investing in real property rental as a source of income. In order for you to get the bigger picture, and to determine whether or not you are ready for such an investment, you might want to ask the advice and help of experts in the field, like the real estate experts at Guamrentals.com.