Investment properties offer much more than just having tenants pay the mortgage until the house is paid off in 15 or 30 years. Multiple tax benefits accompany owning investment real estate, as does the passive income from rental property. Whether you are a first-time investor with more modest goals or an investor who wants 20 or 30 or 50 properties by retirement, it is a scalable benefit.
Investing Creates Income
Whatever people do in their regular, day-to-day lives, whether teachers or stockbrokers or real estate agents, investment property can supplement their income. If they need cash flow to make up for irregular income from their jobs, they should consider investing in real estate. If their income does not support the finer things in life or finance the things they would like to do, rental properties can open those doors. While rents increase over time, investors will likely pay for the property with a fixed-rate mortgage. This means their tenants are paying them more and more rent as time goes on while the payment, principal and interest payments remain the same. Eventually, they will pay off that home and realize a continual, residual income or “mailbox money,” as real estate investors call it.
Future Financial Security
Perhaps the biggest benefit investment real estate offers is the potential income during the retirement years. Imagine collecting a passive income from five or 10 properties, or even a more aggressive 50-property goal, when your working years have come to an end. That passive income will provide for a great retirement – and maybe even an earlier retirement, which many hope to realize. If the vision is to own a collection of properties that are paid off and filled with tenants who are paying rent every month to live in those homes, it is time to start investing
If you are interested in getting started with real estate investing, contact a realtor today!