It was reported yesterday that owners of two large apartment communities in Manhattan can’t make their Loan payments and will have to turn over the properties to the lenders. These folks were highly experienced yet failed with this Investment due to market conditions.

This goes to show even the best “ideas” may not work. Before purchasing an Investment Property that might be just within your reach financially, give some consideration to what would happen if you can’t pay back your loan. Maybe you can’t find tenants for a long period of time. Or perhaps you have to pay for a major repair.

Even if you don’t think failure is likely, you are better off being prepared by determining how many months you can go without collecting rent before you will be unable to make a payment. In the end it will help you make the right decision regarding the purchase of your next investment Property.