Rental properties offer investment returns in five different ways. Not all properties offer all five, so you’re going to want to understand each one.
Appreciation: An increase in value over time. Predictable appreciation is one of the biggest perks of real estate investing.
Cash Flow: The money you make each month after expenses are paid.
Tax Benefits: Write-off general expenses and perceived losses on property to end up with tax-free income or even a return!
Equity Built through Mortgage Payoff: Your mortgage payments are being reduced through the income of your tenants’ monthly rental payments.
Hedge Against Inflation: Lock into a fixed-rate loan while property values increase over the years.
The more you maximize your potential in each of these five centers, the higher your chances of ending up with a successful and profitable rental property.
Interested in learning more about rental properties? Contact us today!