Pros To Owning Investment Properties
January 7, 2018 |
Buying properties for the sole purpose of renting can be a great investment opportunity, if you know what you are doing. Ample knowledge and research is needed in order to have your rental home be a winning investment. Are you interested in real estate
and looking for ways to get extra cash flow? Then it’s time to start investing in properties, and the sooner you start the better the returns.
The longer you own a rental the better investment they become. Also, your likely to have more flexibility and less commitments (family, work, kids) in your early 20s than when you hit your 30s and 40s.
The best part of owning rental properties is the cash flow. Cash flow is the money you make from a rental property every month after all expenses are paid. Cash flow increases over time without every taking away from your principal investment. Once the
mortgage is paid off you will see a large increase in the cash flow. You can use this extra cash to reinvest in the house to make it worth more, buy more properties, or just use it for your own everyday spending. A mortgage can take a long time to pay
off so the sooner you start the sooner it will be paid off.
Rental properties require a larger down payment than homes you purchase to reside in. The down payment is typically around 20%, but this larger amount can be avoided if you live in the home for 12 months. It can be easier to live temporarily in a home
when you are fresh in your career compared to in your 30s when your choices may affect a spouse and children, who likely won’t want to live in a home you plan on moving out of in 12 months.
Rental properties can be rewarding investment that allow you to live comfortably or retire early. Be warned, it is not a get rich fast scheme. It takes many years to start seeing your hard work and upkeep of your rental pay off but the sooner you get
started, the sooner you will see the benefits.