Real estate has been a popular investment for a very long time — for those who can afford it. But in recent years, trends such as house flipping, “house hacking” (living in one room of a property while renting out the others) and short-term vacation rentals have made real estate investment much more accessible, especially for millennials seeking a second income stream in an uncertain economy.

Though the potential profit is tempting, being a landlord may not be for everyone. Rental properties involve significant upfront costs, time commitment, legal liabilities and ethical dilemmas that can put a dent in your dividends. So before you take out a loan to buy an investment property in an “up-and-coming neighborhood,” here are three things to consider.

KNOW WHAT YOU CAN COMMIT TO

There are many ways to oversee rental real estate, from being fully hands-on to hiring someone else to manage a property you’ve never seen in person. When weighing your options, assess the time and money you can commit to a potential rental and the market you want to enter.

If you have more time than money, you might prefer a fixer-upper you can bring up to market value with low-cost do-it-yourself projects. If you have the cash but not the time, it may be better to purchase a place that’s ready to rent and even hire a property manager to handle the day-to-day upkeep. But with rising mortgage interest rates — up to almost 7 percent as of this writing — and property prices increasing every year...

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