Is now a good time to buy homes for the purpose of renting out?

i live in the philadelphia area. i want to buy several homes and rent them out. i plan on holding on to the properties for a very long time around 25 years or more. is now a good time to start doing this giving the current real estate market? if not when?Is now a good time to buy homes for the purpose of renting out?
I am doing this. I am buying as many as I can as quickly as I can.





REO's are your best bet, you can close within 2-3 weeks, 1 if the bank is on the ball, and buy your next one.





Jump in quickly though. 6 months ago I could afford to leisurely look about, now the deals go within 48 hours.Is now a good time to buy homes for the purpose of renting out?
In most markets - YES! Especially if you are buy %26amp; hold. Lock in mtg w/ low interest rates, but your rents can increase every year. To get started, I recommend you buy already performing properties (already rented to good tenants). I also recommend: 1) try to have a least 20% equity on the property (if only on paper) 2) Set up reserves for vacancy %26amp; repairs (8% %26amp; 5% if you have no historicals to work with, 3) Set up a DBA company for management if you are not going to have them professionally managed (3 reasons - 1, you pay the management fee to this company so you have true operating records if you decide to sell, you show your property will cash flow if you need to bring on outside mgmt, and you get to deal w/ the tenants as the manager not the owner {big reasons for doing this}, 4) Keep good records.





I would challenge you to reconsider the 25 year buy %26amp; hold. I know this is a comfortable %26amp; conservative strategy, but long term it will underperform a safer but more aggressive strategy. You should analyze each property every year %26amp; make determinations as to keeping it, increasing performance, re-leveraging in order to get more property, possibly 1031 exchanging it for a better performing property.





Hope this helps - Ken Clay@CastlesInAllSizes.com
Hi:


In most of the areas of the country it is good time to buy.


But you have to do due deligece well before jumping in.


Some times the repair bill will wipe you out.


Buy below the market, in good areas with good working


people so that you could get good tenants. Be sure to work


with good real estate agent and good mortgage company so


that you get a good deal and a good interest rate. Please


avoid ARM LOANS.


CHAUD K
If I had the finances I would be doing the same thing.





I would wait another 6 months - 1 year for the market to near the bottom.
There are tons of bargains to be had now with the prices this low. If I had the funds, I'd be doing the same.