The biggest pitfall I've observed is renting to the first person who can fog a mirror. Be sure to check out the potential tenant's references and credit history. Maybe even go two landlords back - they have nothing to lose by telling you the truth. The current landlord may want to get rid of them or else they'll be surprised to hear they've made an application with you. I've known people who will even check with the local sherriff's department to see if the applicant has a history of passing bad checks. All good things to check out.
But don't get me wrong...choosing the right property, and the right place and time can be a good investment. I have learned lots of tips from working with investors through the years...There are some bargains out there with some foreclosures, but be sure you know what you're getting into. Sometimes it may be worth more to pay more for a property with major improvements already in place. It's hard to find those that only need carpet and paint...usually if it needs carpet and paint, it needs roofs replaced, ceilings repaired, frozen water lines repaired, etc. You get the idea. Working with a Realtor who knows the market can prove invaluable. I'd love to teach you what I've learned!
