The house next door is for sale.

I think it is priced too high, but I live in a popular neighborhood and the houses go fast. If the house sells at the current price, I will be very happy about the value of my house considering we are in a tough real estate market. The house across the street sold last month in under a week.

I started thinking today that if the price of the house next door drops, then maybe I would try to buy it and rent it out. Since the housing market is causing lower than normal prices and the mortgage rates are fairly low, maybe this is a good time to buy a rental property?

There are two main problems with this idea.

First, as I said, I think the home is priced too high. I'm not sure I could rnt the home for a high enough monthly rent to cover the mortgage payments associated with the asking price.

Second, do I really want to own a rental property? It would make things a lot easier having the property next door, but I'm still not sure I want to take on the risk and extra work associated with a rental property.

It is fun to think about, But I doubt I will do it unles the price really drops. Even then, I'm not sure I would do it.

What have your experiences been with owning rental proerties?