It doesn't matter how cheap the property is.
If you do not have a paying tenant you will quickly find your investment costing you far more than you are getting back.
High vacancies are bad news.
Because when your property is empty:
You need to pay your management company to find you a new tenant.
You are still responsible for paying property taxes
And your insurance premium may increase as an empty property is more likely to have break-ins etc.
One way to safeguard yourself is to use a management company which can prove it has low vacancy rates.
But no matter how good your management company is, they won't be able to find tenants for properties in areas where no-one wants to live.
So make sure you check the vacancy rate of the neighborhood before you buy.
A low vacancy rate means it is easier to find tenants.
And rental rates are likely to be higher.
You will also have no problem selling for a profit as demand will be stronger.
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