Welcome REAL-RO!
Many people invest in real estate to build their empire of wealth. Many people own homes, which is a real estate investment. However, we are going to discuss investment property which is another great investment tool. Owning and maintaining investment property is similar to running a small business. You have demands form your clients, (your tenants), you need to manage your costs, keep your properties curb appeal up, maintain proper insurance coverage, manage your costs, and more. Here or some ways people go about real estate investing.
Many people get started similar to those that start a small business, because their parents owned rental property. They learned the ropes and saw how it could provide income and wealth. You are letting your renters pay off your property so that in the long run you will have a valuable asset that is paid for which can be sold off or retained for future income. Many people feel more comfortable investing in real estate vs the stock market as it is a tangible asset they can see and touch.
Another aspect of real estate investing is the concept of leverage. You make money with borrowed money. There is not a large up front investment like there is say when you purchase a franchise. A ten thousand dollar investment can control a one hundred thousand investment property.
Some people start off buying as duplex and living in one half and renting the other side until they can build up equity and savings to by their own single family residence. Then they can rent out both sides of the investment property. You can also keep each home you have lived in and convert then to a rental property and use them as a means to buying bigger and better properties in which to live.
It is not all roses though. You will get calls in the middle of the night, renters that default on payments, ones that do damage, but as soon as you can you should hire a property manager who can handle all of this for you. Yes they will take a few percent of you profit but they are invaluable once you start to get a few properties in your portfolio.
A person who would never in his life be able to afford a beachfront vacation home was able to buy one that he rents out for a portion of the year. That is enough to turn a positive cash flow and to pay off the mortgage at the same time. In twenty years he will have a beach front home bought and paid for that he can use as a retirement home, sell or continue to rent for income.
featured property
| City: | Portland |
| Beds: | 4 |
| Baths: | 3.0 |
| Square Feet | 4578 |
| Area: | NW Washington Co |
| Status: | Active |