“Real Estate investing, even on a very small scale, remains a tried and true means of building an individual’s cash flow and wealth.” Robert Kiyosaki
Investing in real estate is one of the oldest forms of creating wealth. Owning real property offers many benefits including cash flow, profitability, liquidity, and tax advantages. There are several property types to consider when deciding to become a landlord. Rental opportunities can be found using any form of real property such as agricultural land, a house, an office building or an apartment. Before choosing to become a real estate investor, take into consideration the amount of time and money needed to manage the premises properly.
For many investors, rental properties provide an advantage over other forms of investing. For example, real estate is tangible. Therefore, owners can see and touch their investment. Landlords can choose to do routine maintenance and other improvements themselves or hire professionals to do the job. Each decision affects the profitability of the asset.
One word of caution, turning an investment property into a “cash cow” will have a negative impact on vacancy rates as well as future salability. Pocketing rent money and choosing not to reinvest in the asset becomes problematic. No one wants to pay top dollar for a piece of property that hasn’t been maintained or updated, regardless of how great the location is. Regularly maintaining the premises is a key factor all landlords must take into account when purchasing a property.
Are you considering real estate as a means to grow your wealth? Let one of our professionals assist you in determining which property fits your investment needs.