Here is a good link that provides broad topics that should be broken down before you allow for renters.

A piece of advice that I was told is to try to rent above your break even point. Meaning above what you are paying monthly for a mortgage and and other associated costs … ex. Home Owners Association (HOA) fees. Take your profits monthly and put that into a separate savings account (Money Market or high interest) strictly for that property. Slowly, you will accrue wealth in that account and in the event of a major cost such as a hot water heater or HVAC replacement, you can use money from that account instead of your personal one. I would caution against investing that money as you are probably going to need to use some of it for yearly property upkeep. You don’t want to be in an invested position where you are forced to sell.

Would you still recommend the low yield/safe strategy in a high inflation environment? Asking for a friend… lol

You can tell your friend yes :slight_smile: In a very high inflation environment think 1974-1983 (averaged 10%) it will be hard to find a short term stock of fund that will produce above 10%. Although any gain does lower that %. The other part of that equation for your friend is he/she willing to sell anytime and take whatever gains or losses in the event of an emergency where funds are needed? I’d do the math to see which one has more risk.

Ease of access to funds is critical for any short term liquidity needs, but that same 10% inflation means if your 1$ is now worth 90 cents 1 year later, so I would take any gain to help mitigate that.

Good example - short duration TIPS funds with a splash of gold/commodity/real estate exposure in etf funds. TIPS are ultra liquid and have lower volatility, while the rest will be more volatile with potentially better inflation protection.