Rentals Provide the Opportunity for Great Return
Our investment property project has ignited a passion we never realized was there before! What had previously seemed like an overwhelming task – owning an investment property – has actually been a fun and fulfilling experience. So we wanted to take a moment and share, what we think, are the most meaningful reasons why owning an investment property is worth it.
When you own a rental property, you can leverage your cash, but also your time and abilities. If you want to restore a rundown property, that’s a realistic possibility. If you have management abilities, you can apply that skill here. It’s multifaceted and you have more of the hard and soft skills for it than you might think. However, the more you put in, the more you can get out of it.
People Will Always Need to Have a Place to Live
No matter the volatility of the real estate market, rental properties will always be in demand because people will always need a place to live. Since the pricing in the real estate market is ever increasing, it’s making it more difficult for people to enter into the homeownership phase, leaving room for renters. Investing in real estate ensures that your housing costs stay fixed and manageable, whereas renting is subject to inflation over time.
Rentals are Simple and Straightforward
Rental properties aren’t easy, but they are straightforward. Although there are moving pieces to owning a rental property, once you’ve found the right place (or fixed up the right place), found suitable renters, and developed repeatable processes, it’s not overly complicated.
It’s Almost Passive Income
An investment property is a great source of passive income (well, almost passive). You don’t have to be on-site and present for this source to produce income. Of course, this doesn’t mean you can be completely out of the picture…you need to be available for things that pop up here and there and you need to know how to respond to tenant requests and issues. You can also outsource a lot of the landlording process if that’s not your cup of tea.
Money in Your Pocket & Help with Your Mortgage
Once you’ve placed tenants in your rental property, the cost of rental income should cover the expenses of any items that need addressing in the property itself and then overflow into savings. Take the time to build up a healthy emergency fund (about 6 months of monthly rental income) for rainy days and unexpected issues. If you do the math right, your renter could be helping you pay the mortgage off of your property and therefore helping you gain equity on the property faster.
Conclusion
In conclusion, if any or all of these points possibly sparked something in you, as well, please let us know how we can help foster that spark! We are always here for you as resource and guide.
SOURCES
https://www.biggerpockets.com/blog/i-love-rental-properties
https://www.thebalancesmb.com/investing-in-income-property-2124810