We love rental properties! So much so, that we created our very own Long Term Rental Program. Flipping and wholesaling are definitely lucrative but sometimes it is nice to kick back and have some passive income!
The benefits are endless but we decided to name a few for you:
You can purchase using leverage
Rental properties are great because you can receive financing from lenders to increase the potential return. This is called “leverage”. You don’t have to have 100% of purchase price to buy it. You can buy a rental for less cash many other investments.
You can manage the investment directly
With a rental property, you are directly responsible for the outcome of the investment. You analyze the property before buying it. You fix it up, make sure it is in good condition to rent then you manage the rental’s performance. If you want to increase the rental’s income, you can make upgrades to do so!
There is a lot of variety
Rental properties are so versatile. You can invest in single-family homes, multifamily (large or small), office space, section 8, transient or a variety of these!
The possibilities are endless.
People will always need rentals
The real estate market can go up and down, but rentals will always be in demand! Even if the real estate market takes a dip, this is somewhat of a positive for rentals because it makes it more difficult for people to qualify for a mortgage and more likely to need a rental.
There are multiple ways to profit
One of the greatest benefits of rental properties (compared with other real estate niches or strategies) is the opportunity to capitalize on all 4 of real estate’s major profit sources.
-Cash flow
-Appreciation
-Tax benefits
-The loan pay down
Passive income
You do not have to be present to make money; what a relief!!
You can set up systems and processes in place to manage the property. There are a lot of property management companies that you can outsource to.