You don’t have to be a genius to own rental property. You just need a good business plan and a strategy for securing good properties at low costs. You don’t even need to live in the same state as your rentals.
Innovative Property Solutions suggests seven reasons you should consider rental property ownership:
Rentals are a great source of investment as you have the ability to leverage the cash of a financial institution or a trusted investor. You don’t need to expend your hard-earned cash in order to pay 100% of the price tag on a property. In fact, this luxury affords you the ability to secure substantial properties much more comfortably than what you’d need to expend on a stock portfolio.
In addition, time can also be leveraged more easily with rentals than with other investments. Whether working on a renovation project versus networking in order to raise funds, you have the ability to use your time and talents to your advantage in order to secure your future.
As a rental owner, you alone are responsible for your success based on your own pre-purchase property analysis. You don’t need to wait on board members to make decisions. You can move at your own pace as you directly manage your investment(s).
Regardless of current or future market conditions, people will always need places in which to live. You will always be a beneficiary of the concept of demand. With debt loads such as student loans, it is becoming increasingly difficult for consumers to secure mortgages in order to purchase properties. As a result, you stand to benefit. The demand for pristine rental is predicted to increase impressively over time.
Even in light of the 2007 market crash, rental owners came out smelling like a rose. They did not suffer the effects because they knew what was coming. The boom-and-bust cycle never ceases, therefore buying low and selling high rings truer with each passing year. Smart investors know how to identify this pattern.
While the actual work part of rental property ownership isn’t always easy, the act of investing in rentals is simple. The strategies are “user friendly” and the resources endless. There are many seasoned investors who stand at the ready to assist in times of need. Resources such as websites, podcasts and maybe even some good friends are always available. With the right amount of time dedicated to some serious research, you will find that getting started isn’t as difficult as you might think.
Brush up on your haggling skills and you will find that you can invest in a good rental for a relatively low amount of money. In other words, there are many opportunities to purchase rental properties below market value. As with a car, you should never pay the full sticker price. Be patient and shop around until you find a good deal and then go in for the kill. Find a $100K property that you can comfortably purchase for $80K.
Rental properties afford their owners the opportunity to capitalize on cash flow, appreciation, loan pay down and tax benefits and well as depreciation.
Find a highly recommended property management company and watch the cash roll in while you roll out to the Bahamas.