Owning rental properties can be a powerful way to generate profits and a great addition to a balanced investment portfolio, but there's more to it than simply buying the place and collecting the rent.
There are up-front and ongoing costs that come with property ownership, and while it's typically considered passive income, that cash flow can take some active oversight during both your time as owner and at the end if you choose to sell.
A good rule of thumb is to expect to pay about half your rental income for taxes, insurance, repairs, maintenance, and other expenses. Here's a look at the big-ticket items to consider before you take the plunge.
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