#1 reason why people don't invest in real-estate?
When I talk to people who have never invested in real-estate before, half of them have no interest in it, while the other half are fearful of it.
I usually investigate the people who are fearful of it and try to understand why they're afraid. Most of them will always talk about the horror stories of bad tenants or midnight tenants(tenants who leave without notice, before their next payment), evictions, and how stressful it is been a landlord. They hear one or two bad stories and then associate every possible aspect of it to be bad, without investigating further on the good aspects.
I've never had a rental property, tenants or played the role of a landlord, but the way I see it is this. If you have a good tenant screening process, do your due diligence, and manage risk, most of the time, you won't have bad tenants. Sure you'll have the occasional rotten egg, but most of the time you won't. If you're property is vacant, and you just put in some random person, regardless of who they are, then the odds of having a bad tenant increases. With all the tools at our disposal(tenant screening, due diligence, etc), we can control the odds into our favor and have a better probability of getting a good tenant.
This is what I tell people who are afraid of rental properties and REI in general. I've been discredited by these same people because I have no direct experience with it. So I'm asking buy and hold investors and property managers alike: "am I right about this subject? Or do I have no idea what I'm talking about?"
Thanks in advance!