being a landlord is an excellent way to make money, but also very risky.
Look at the success rate of time-shares and other by owner type rental properties. Alot fail horribly, but some can succeed.
These are my 3 main points to be a successful "side-job" landlord
#1
You own the property outright, no loans, all paid off.
#2
You have easy access to responsible and dependable renters (military bases are best for this, colleges can be hit or miss, low income neighborhood is ftl)
#3
You are handy with home repair. Get ready for the midnight (the toilet is overflowing, the dishwasher is leaking everywhere, the sump pump is broken) phone-calls. You can't hold the renter totally responsible because in the end you are talking about damage to your property caused by faulty equipment.
Without those three you will probably lose money. I would be prepared to do the following:
-Have enough expendable income to cover the monthly mortgage each month.
-Have enough expendable income to cover routine maintanence and utility repair not covered under mfg warranty
-consider forced renters insurance for the renter
-Look into county ordinances re: rental property in your area
-Look into available options for eviction and personal judgment against delinquent renters
-Look into writing your own contract or hiring an atty to prepare one for you
#edit, in response to your "is now a good time to buy" question, if you are wanting to purchase a home LONG TERM, now is as good as a time as it will ever get.
If you are wanting to purchase a home and sell/move in 3-5 years, you could risk having a loan worth more then the original purchase price. You may want to rent and wait out until you are stable. Alot depends on the market where you are at though, some areas apparently are still over-valued / under-valued.
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