Are rental properties a safe investment?

[tupac]

I'm thinking about buying a house, to live in at first and probably with a roommate, but my line of work is quite specialized and it's possible that 3-4 years down the road I may end up having to move.

If this happens, I'd be looking at turning the house into a rental property. I'd likely have to move out of state, so I would also need to have a 3rd party property management company handle tenancy and maintenance of the house.

I'm wondering if anyone who has experience owning rental homes could offer some advise. I'd like to know if rental properties are a safe investment, even with my situation under consideration.

Thanks in Advance :)

[patwin87]

Don't assume that a mortgage you have on the property will be covered by incoming rent. After paying the mortgage, property taxes, insurance, upkeep, and property management fees, you'd be lucky to break even on your property. And that's if your place is rented out.

If you can afford the mortgage, go for it. But don't get the mortgage with the assumption that in 3-4 years you'll have a tenant in the property that will pay for your mortgage AND make you a few dollars on the side.

(Also, be prepared for the headaches of being a landlord, even if you have a company managing your property.)