With some exceptions, residential real estate is usually a smart and profitable investment opportunity. Those who can purchase more than one residential property are typically at a distinct economic advantage. They can collect rental income that may cover their entire mortgage payment, all while building equity. There are, however, a few potential disadvantages.
Rental Payment Default
There are a variety of reasons why tenants can default on their rental payment, some of which include:
- Abandonment
- Serious illness
- Eviction
- Deployment
- Death
Fortunately, renters insurance for landlords may cover the loss for these kinds of circumstances. More information about this kind of coverage can be found at https://www.rentrescue.com.