Advantages of Investing in Property
For investors looking to diversify their portfolios and realize stable and substantial gains, there’s a lot to like in single-family rentals.
Purchasing an investment property provides the appreciation of real estate plus steady cash flow from tenants. Here are some reasons why purchasing an investment property makes sense.
Many people invest in rental properties simply because of the cash flow – the extra money that is left after all the bills have been paid. The cash flow can provide ongoing, monthly income that is mostly passive, allowing you to spend your time building a business, traveling or reinvesting in more real estate. Cash flow from real estate is stable and far more predictable than most other businesses.
There are numerous tax advantages that come with purchasing an investment property, such as the ability to deduct depreciation, loan interest, and many costs associated with management.
Those deductions can be used to offset the cost of potential repairs generated by the property.
When you buy a rental property using a mortgage, your tenant is actually the one paying the mortgage payment, thus increasing your net worth each month.
Because of the loan pay down a rental property is essentially a savings account that grows automatically, without you depositing money each month.
Investment in rental properties offers a number of significant advantages to both traditional investment assets and alternative real estate investments.
Investment properties offer a lot of strategic value to your portfolio, and finding one in distant markets is easier than ever with Roofstock.