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Is there a Better Investment Opportunity than Rental Income Property?
Is there any investment opportunity that could beat income generating real estate over the long term? Well, with your initial financing concerns aside, rental properties can offer a high, continuous extra income to help pay off your mortgage, meet repairs, and add confidence to your investment decision.
Cynics might point to cash flow issues and big unseen repairs as key reasons to be way of rental properties. You’ve seen those issues on TV shows, yet the buyers always seem to handle them an make a big profit. If your plan is to retire happy in Costa Rica this is probably the best way to make that happen.
Watch this excellent Video from Phil Pustejovsky about how to succeed: Take responsibility, think opportunity and take massive action:
If you’re concerned with a potential housing crash in 2017, the market stats don’t support that notion and it looks good to 2024. Review the Los Angeles Housing market forecast, San Francisco market forecast, and the New York market forecast for predictions and commentary.
Factors that Support Investing in Income Rentals
There’s a housing market crisis across North America and demand for rental apartments, condos and houses will stay high. It’s unlikely that a quick solution will happen to generate housing for everyone. This land development held up by legislation, it’s a sure bet that rental property is going to be a hot investment sector.
Here’s 11 Reasons You Should Take Rental Income Investing Seriously:
- growing number of Millennials entering their family starting and home buying years
- mortgage rates not forecast to rise much
- rental prices can stay high because employment is good and renters have no options
- stories of renters destroying the place almost never happen (renter screening process)
- you can deduct mortgage interest and real estate taxes on rental properties
- you can write off utilities, insurance, repairs and maintenance, yard care, association fees
- write off upgrades such as decks, pools, tankless water heaters, and even landscaping
- write off depreciation of assets/home
- write off solar power generation unit
- the income won’t become taxable until you run out of upgrades/repair costs
- the renters will have to cover any cost of living or mortgage rate growth
That’s quite a compelling list of reasons why buying a rental property makes incredible sense. And if you live in the unit, then you’ve got your cake and you’re eating it too. So far from being a risky investment, rental income properties have built-n safety and tax features that make them a no brainer. All you have to do is find financing.
Here’s how to calculate the numbers on a rental income property such as cash flow, capital expenditures and all the rest.
What is a typical Return on Residential Rental Property?
I revealed in my previous post on rental property investment a return of 30 to 40%. On a common million dollar home in San Diego, Los Angeles, San Francisco, New York, Vancouver or Toronto, that’s 300-400 thousand dollars. I’ve seen homes in my neighborhood rent out fast at $5000 to $7000 a month.
Rental Income Property Calculator
Top Tips for Buying the Right Rental Property for You
- decide which city has the best potential for rent prices and purchase price
- decide what kind of property will work for you
- decide whether you’ll be living in the property
- determine how much capital you have to work with and how much you can sink into improvements
- don’t buy a fixer upper
- buy a home with the best likelihood of being rented:
- buy a home in a lower price range to begin with (first time investor)
- consider a property management firm that can handle maintenance and renter screening
Here’s some further resources to get you on your way to finding the perfect property:
Related posts: Housing Marke Forecast | San Francisco Apartment Rentals | New York Real Estate Prediction | 4K Real Estate Videos | Real Estate Agent Search | Rental Income Investment | Low Mortgages | Car Insurance | Los Angeles Housing Market | Toronto Housing Market | San Diego Housing Market | Real Estate Agents | Future of Real Estate | Toronto Real Estate SEO | Vancouver Condominiums | Toronto Condos New | Vancouver Housing Forecast | Digital Marketing for Realtors | Realtor Branding | Real Estate SEO | How to Choose a Real Estate Agent | Zillow Leads Review | When should I Sell My House? | RETS IDX | Zillow Home Search | First Time Home Buyers | Canadian Home Buyers Guide
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