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Five Benefits of Investing in a Rental Property

Posted: July 8, 2017 at 5:37 pm   /   by   /   comments (0)

A rental or income property is an investment made to earn an income. With the right mix of location, features and price–you can make a good return on your initial investment. This is especially true if you rent in a market with a high demand for rentals.

Since the jobs, and the economy, can be fluid–many people are looking at rentals over home ownership. Rentals give renters the flexibility they need that is different from feeling tied down by a mortgage. Why is owning rental property advantageous? Read on to learn more.

You Can Hire a Property Manager

If you worry about the day-to-day responsibilities that come with rental property, then you are not alone. There are details to manage such as advertising, contracts, rents, tenant screening and more.

On the other hand, you can simply hire a property manager to handle all of that for you. According to, marketing, networking, assessing the property and collecting rent are just some of the responsibilities that property managers handle.

They also take care of maintenance, client satisfaction, contracts, evictions, documentation and more. In fact, the right property manager can do it all.

This leaves you collect your income and hunt for more lucrative rental properties.

You’re the Boss

With regard to a rental property, you get to decide what type of property you prefer, who you will rent to, how much you will charge and how you will manage the property. There is nothing more exhilarating and freeing than being your own boss.

With a traditional job, someone else makes the big decisions for you. Being your own boss means you can work the hours you prefer, wearing whatever you like.

Plus, once you go hunting for rental properties, you may be surprised at how many potential money makes are on the market today.

You Can Get Rental Property Tax Breaks

The government provides many tax advantages for rental property owners. They do this to encourage the availability of rental homes. Under tax laws, people who own rental property are considered investors and business owners.

So, compared to the average home owner, you can bask in more rental property deductions. To illustrate, you can deduct traveling expenses and rental property depreciation.

You Can Invest with a Bank Loan

You don’t have to fund your investment with just your money, you can use other people’s money–which, is called leverage. Yet, if the value of the property rises–you will enjoy a higher return.

If you qualify, many lenders can finance between 50 to 80 percent of the property price. You can work with banks or finance companies.

You Get Cash Flow

Cash flow is something you get after all of your monthly expenses are paid. If you were to charge 1,500 a month in rent–with a mortgage of $700 per month–then you would have $800 left.

You might then deduct $300 for maintenance and any vacancy costs. As a result, you will have $500 going directly into your bank account. Pretty good deal, right?

Investing in a rental property is not as scary as you think. It can be lucrative, and you can leave the details to your property manager.

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