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5 Reasons Rental Properties are an Amazing Investment!

5 Reasons Rental Properties are an Amazing Investment!

Many people in the United States have taken up rental properties as a business.  There are many people who also enjoy flipping and wholesaling properties for extra income, along with the stock market (which may be the most popular investment these days).  But rental properties have many different factors that we believe can be more beneficial in the long run than any other investment. 

Below we will explain 5 reasons why we think rental properties are an amazing investment.

1.  You can use leverage to purchase rental properties

Rental properties are a great investment because you can use someone else’s money (or the banks) to increase your potential return (this is known as leverage).  You don’t need to have 100% of a property’s purchase price on hand to buy a rental property.  Rental properties allow you to use far less cash to purchase, than might be needed to buy stocks or other types of investments.

2.  You can hustle for greater returns

With rental properties, you can not only leverage your cash, but you can also leverage your time and network to make greater returns (which again is more difficult to do in other investments).  If there are updates that need to be done to a new property, you can do them yourself.  Leveraging your network and skills to outsource these updates is something you can do too.  In the end – the harder you hustle, the bigger the payoff!

3.  Managing your investment directly

This is a big plus for many people, especially those who want to be in control of their investments.  With rental properties, you are responsible for the amount of income you earn.  It is up to you to analyze and choose the right property, make sure the property is in good shape to rent, all items in the house work, etc.  This gives you full control over your investments (rental properties).

4.  Everyone needs a place to live

No matter if the economy goes up or down, people always need a place to live!  The demand for rental properties will never end.  Also, with student loans being an epidemic, it makes it much tougher for people to get approved for a mortgage, and our culture also continues to value the ability to be mobile and leave a certain area at any time.  This creates the demand for rental properties to increase for years to come.

5.  People have been renting properties for decades

One of the greatest benefits of rental properties is knowing that millions of people have been successful at it for decades before us.  Since the beginning of time, landlords have continued to build wealth by owning and leasing out residential property.

In today’s society/economy, things have not changed.  A recent study showed that 1 out of 8 people consider themselves to be residential real estate investors or own residential properties.

 

If you’re in market for purchasing rental homes and need information on renter’s insurance, please feel free to reach out to us.  We would be glad to answer any questions that you have!  CLICK HERE