Becoming a landlord is one of the easiest ways to invest in real estate. If you have a little extra money, property prices in your area are low, and rent rates are profitable, now may be an exciting time to invest in real estate as a hedge against inflation and to generate additional monthly income.

Not all investments are created equal. Investors in stocks on Wall Street have hit tough times in 2022. Retreating stock values are doing the opposite of what you need during inflationary times. In general, the price of real estate and rents rise right along with inflation. In tight housing markets, rent increases often outpace inflation. Although home prices are high, interest rates are still relatively low (compared to historical averages), this should still be a good time to lock in a mortgage to combat inflation.

Here are the key tips to getting started as a landlord.

1. Research the best investment area near you. Experienced investors sometimes venture outside of their own backyard but for beginning landlords, it’s wise staying close to home. You can keep your maintenance costs low by doing some of the maintenance yourself. Being able to periodically inspect your investment also brings peace of mind to the new landlord. Get started by researching neighborhoods near you that are known for the features that quality tenants are willing to pay top dollar for. Quality of life neighborhoods feature a good school district, walking distance to stores and amenities, and a short commute to decent-paying jobs. House-specific niceties include three or more bathrooms, a master suite, and stainless steel appliances in the kitchen. This is also the recipe for an investment that will appreciate in value along with providing a monthly income.

2. Crunch the numbers. Once you find the house that meets your basic requirements, it’s time to crunch the numbers before doing anything else. Although interest rates are low, qualifying for an investment mortgage still comes with stringent requirements. You can expect to need a 20% down payment. You can easily use an online mortgage calculator to crunch the numbers to see what your monthly mortgage payment will be. Other information that you’ll need includes the property taxes, insurance, and maybe HOA fees. Also, factor in about 10% for maintenance and repair costs. Of course, you’ll need to learn how much similar houses in the neighborhood are renting for. Your monthly rent goal is 1% of the value of the house. A $150,000 house should rent for about $1,500 a month.

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Ask Brian is a weekly column by Real Estate Expert Brian Kline. If you have questions on real estate investing, DIY, home buying/selling, or other housing inquiries please email your questions to askbrian@realtybiznews.com.

Question from WildCat in CA: Hi Brian, I’ve been with Sierra for three years and we’ve decided to get married. At first, I was incredibly excited about this but after a few days, I started thinking about some of the implications. In particular, I thought about how marriage will affect our finances. I know that it’s not romantic but in many ways it seems like getting married can really mess up a couple’s finances. I have one big example that I’m asking for your help with. Sierra took out a mortgage to buy her parents a house a couple of years ago. She didn’t just co-sign for the mortgage, the mortgage is only in her name. Her parents pay a small portion towards the mortgage each month, but Sierra pays the bulk of the payment. So, here is my question. If we get married, will I become responsible for the mortgage on her parent’s house? I haven’t even talked to Sierra about this because I’m afraid it could destroy what has been a great relationship up until we started talking about getting married.

Answer: Hello WildCat. That’s a tough question that you’re asking. My first thought was that you could try writing your situation into some type of a prenuptial agreement and that is when I realized how important it is for you to get a knowledgeable attorney involved (I’m not an attorney). In my opinion, this goes beyond just general legal advice because there are so many possible variations involved. For instance, it could get in the way of the two of you buying a house if you don’t already have one. Or what could be the consequences if she defaults on the mortgage or even has to declare bankruptcy? Another complicated possibility is what happens if there is a divorce? Would you still be responsible for Sierra’s parent’s mortgage if you were no longer married to Sierra? Importantly, the laws vary drastically from state to state.

I understand why you are reluctant to talk to Sierra about this, there is nothing romantic about marrying someone else’s debt. The best I can offer are some broad and general thoughts about the possibilities of what it does mean when you marry someone else’s debt. California is a community property state, so I’m going to lean towards what this could mean in community property states.

If you live in a community property state, most debts incurred after marriage will be treated as the responsibility of both spouses. Nine states have community property laws:

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