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- You will need to budget for your fixed expenses. Most importantly, your mortgage payment - which includes principal interest, taxes, and insurance.
- You need to take monthly fees into consideration as well. This includes lawn and pool care, as well as homeowners association dues.
- Budgeting for vacancy rates is also necessary. For whatever reason, a tenant may not be able to fulfill the agreement and you need to be sure you can afford to pay for the property without a month or two of rent a year.
- Miscellaneous repairs will need to be taken into account as well. You are still responsible for the inevitable day-to-day problems every homeowner is familiar with.
- Tenants may damage the home, so you need to be prepared to fix any problems caused by any former tenants.
- You need to consider the opportunity costs of foregoing the money you could have received during a home sale. Is there a better investment, with fewer risks, you could make?