House rental properties are the proverbial double edged sword of the investment real estate market. On the one hand, if you do your homework, rental properties can bring you enough cash flow each month to retire.

House Rental Properties can make you a fortune... if...

If you manage to own several such properties in relatively close proximity to one another, you will find that you are pretty much able to set the standard for rents in a given area. This in turn will define the property values in your area, and overall points to a win-win situation.

On the other hand, house rental properties can very quickly turn into the proverbial albatross around your neck if the bottom drops out under the real estate market. If the bubble bursts and homes can no longer demand the kind of asking prices that were considered the norm in the past, you will need to consider early on if you should ride out the market change or unload your properties.

Ideally, you will have enough equity in the homes to prevent you from being upside down in any of them, thus giving you at least a few months leeway to make your decision. If you own several such properties in the same area, you may find that you will have a higher vacancy rate than you can sustain on the long term, and a rent adjustment is in order.

How to avoid problems with house rental properties

While it is hard to unequivocally answer the question as to whether house rental properties are a good investment or will be more trouble than they are worth in the long run, the fact that they have the power to quite positively affect your cash flow statement is doubtless.

House rental properties can be a saving grace to your cash flow statement. If you make sure that you're buying in the right location, and with the right terms, single family dwelling rentals can make you quite wealthy.

At this point in time there is nationwide slowing in the real estate market and therefore the importance of cash flow is as high as never before. To this end it would be considered unwise to look for house rental properties unless you understand where to look, and how to negotiate.

That is, you want to look for rental properties in areas in which there is a consistent and strong rental market. Also, look for an area in which you can buy several homes in succession or at once.

If you're looking for house rental properties in an area outside of your home state, you absolutely need a team to help you. You'll need a good "bird dog" - someone who is out there looking for properties for you, and who knows your buying criteria. You'll need a good real estate agent, mortgage broker, and of course an excellent property manager.

Although rental properties, or real estate investing in general, is always a risk, you can significantly reduce your risk (almost to zero) with the right approach - the TEAM approach.