Rental properties can be great investments for you and your family’s future if done correctly. In addition to realizing gains from property value appreciation and neighborhood improvements, passive rental income can provide extra monthly cash flow. Once the mortgage is paid off, much of your rental income is profit, allowing you to realize and enhance your retirement goals.
Rental property is of course a tangible asset where you can personally impact the worth of your investment. You have more control and say in how your property performs in the market than any other class of assets. If you choose to be an active investor by making sure your property is being well taken care of and stays in good condition, you will realize the benefits of investment real estate. With sound judgment and the help of a real estate investment specialist, you can realize better than average gains in the short and long term with investment property.

Purchasing with a plan

Investing in real estate differs depending on the type and location of the property you are buying. Purchasing a single family home has different implications than a property purchased to be leased commercially. Some investors buy multi-family units so they can have rental income from one or more units while fixing up or living in the remaining units. Multi-family units have more costs to consider than  a property that will be rented by a single person or family. Which type of investment property fits your goals? Also knowing if you will be a Landlord or hire a competent property manager to take care of property will need to be considered.  Being pre-approved for an investment loan and ensuring that your own finances are in order will make it clear what kind of capital you will need to proceed.

Stay tuned for the 2nd step in Investment 101 – Steps for Success