Renting for profit has positives, but many people get into it not understanding the negatives. Some things to consider:
1. If you’re young enough that you are buying your first house would you qualify for a second home mortgage without selling your first? If so would your risk rating be higher because you are at the max for debt to income?
2. Picking out investment housing usually involves different factors than selecting your home. Think through the differences. It’s not about how nice it is, but it’s value and cost versus the prevailing area rental income.
3. You will have maintenance problems with the house after you rent and you must take care of them immediately. This may be more so the case renting to students.
4. You will likely get some bad renters, especially if renting to students. Learn how to structure the lease agreement. How to include co-signers for students with no income.
5. Students do stupid stuff. They don’t take care of your property. Your old neighbors will raise hell with you.
6. If you go through with it you might want to consider LeaseRunner, an online service that helps with advertising, applications, listing, checking credit and criminal histories of prospective tenants, lease agreements, and an automated rent payment system.