Income properties are indeed the best real estate investment strategy you can get into right now.
Investing in real estate and owning an income property gains you financial stability and freedom in the long term. To put it in simple terms, income properties reap passive income for many years to come, given the right location and economic conditions. Whether you have just graduated from university, are considering a part-time job, or even a career shift, real estate investing is definitely the way to go.
Don’t worry if you are not equipped with the right education and/or experience because there is an abundance of readily available resources on the web in the form of real estate blogs, news, and podcasts. You can find books on real estate too. Or better yet, hire a real estate agent to get you started and kick start your real estate investing career. Almost anyone can invest in real estate and make money. But building wealth in real estate is not an easy task; make sure that:
✔ You have passion for it.
✔ You are willing to put in the time and work.
✔ You have enough capital and/or a good credit score.
All in all, investing in income properties is a great idea, and in this blog post we will tell you exactly why it’s the ideal investment strategy.
Related: Learn How to Invest in Real Estate Part-Time vs. Full-Time
13 Reasons Why Income Properties Are the Best Real Estate Investment
1. Passive income
The best perk of all is the passive income you earn from owning and renting your income property. Make sure to search the housing right market and capitalize on the right location for investing in real estate. The right formula for success in real estate investing is choosing the right neighborhood and the right tenant for your income property. Not only will you be able to mitigate your vacancy rate, but you can have the leverage to charge higher rental income as a result. Not bad!
2. A good location is an income property’s best friend
In tandem with the first point, it is important to highlight the importance of choosing the right location for real estate. A good location reaps long-term appreciation and better returns than a run-down neighborhood with a high crime rate. This goes without saying!
3. You don’t need lots of money to invest in income properties
This is an important point to bring up because real estate investing is affordable. Taking out a bank loan will facilitate the process and allow you to invest in income properties in the area of choice. Make sure to keep your credit score healthy and choose the right mortgage plan for you.
4. You have the full autonomy over your investment
The good thing is that you are in full control over the profitability of your income property in the long term. You are the decision-maker when it comes to choosing the right tenants to live in your income property, you set the rental income, and you are also responsible for the property upkeep. As a landlord, you must have the right communication skills and patience to keep your tenants happy.
5. An income property will never go out of style
People will always need a place to live. And a good number can’t afford to buy houses, so renting becomes a feasible option for them. This in turn increases the demand for short-term rentals like Airbnb and traditional rentals. So, long story short, it is never too late to invest in real estate.
Related: The Beginner’s Guide to Rental Property Analysis
6. There is no ceiling on how much money you can make
You read this correctly! There is no profit quota on real estate investing. Unlike your 9-5 job, real estate investing does not have a fixed salary and/or a ceiling on how much you can earn. Making money in real estate depends on your creativity and experience as a real estate investor.
7. You don’t need to quit your full-time job to invest in income properties
Owning income properties will not take many hours out of the day. It can certainly be done part time, without intervening with your full-time job. If you want to keep your job and invest in real estate on the side, it is perfectly doable and highly recommended if you are just starting out in real estate. You can even hire a property manager to do that for you.
8. It is a fairly safe investment with much less volatility than the stock market
Unlike the stock market, owning income properties is a fairly safe investment with a good ROI. Although it is crucial to keep up with the real estate market to invest strategically and find the best profitable properties, it still maintains a less risky outcome than the stock market.
9. You can leverage your equity to grow your real estate business
If you own one income property, you can use the equity accumulated to buy more income properties without paying out of your own pocket. Right now, banks are expecting many homeowners to borrow against their equity and invest in more real estate. Equity is a good leverage for real estate investors.
10. You are your own boss
The best perk of all is the fact that you are your own boss, and you are in full control to manage your real estate investments directly without any superior intervention.
It is up to you as a real estate investor to:
✔ Run real estate market analysis and investment property analysis before you buy income properties.
✔ Ensure your income property is in a tip top shape.
✔ Ensure your income property is earning a high ROI.\
11. Appreciation is your lifetime friend
Investing in the right location gives real estate investors the advantage of accumulating long-term appreciation, which helps them sell for much higher than what they originally paid for.
12. Tax perks are a given for income properties
As a landlord and a real estate investor, you are entitled to tax advantages for operating your income properties. Real estate investing is a business and, in turn, you can deduct expenses associated with running it.
13. You can build wealth and financial freedom via income properties
As previously mentioned, there is no ceiling on how much money you can make from real estate investing. Do not limit yourself to conventional ways, try to think outside the box, and think of creative ways to invest in the best real estate investment strategies to reap the highest ROI.
Related: Using Mashvisor’s Investment Property Calculator to Estimate Rate of Return
These are only few of the long-term benefits gained from investing in real estate and owning income properties. Make sure you don’t jump in blindly; study the hosing market, seek professional advice, and, most importantly, stay on a steep learning curve. For more knowledge about real estate investments, keep reading on Mashvisor.
Make sure to leave us a comment below on other benefits gained from owning an income property.