If you choose to invest in residential real estate, it is important to decide whether you are simply looking to resell the property quickly (also known as “house flipping”) or if you intend to keep it as a rental property. There are advantages to both, but in some cases, renovating a property to rent out can be very beneficial. Here are seven reasons to consider investing in a rental property:
- You can get a consistent source of revenue
- Many people talk about the benefits of “passive income,” money you make without needing to work. While renovating and maintaining an investment property can be hard work, once it is done, you can just collect rent as a source of income while only doing what is necessary to keep the property in good repair.
- You have someplace to move if you need to
- It is important to remember that you own the property, whether or not someone is currently renting it out. This means that if you face problems at your current residence and need to move out temporarily, you will have someplace to stay until you sort any issues that need to be resolved.
- You do not need to leave the property empty
- One of the problems with only renovating a house for flipping, without renting it out, is that it is left empty most of the time. These empty homes make for appealing targets of burglars, vandals, and squatters, which can be avoided by simply having someone renting out the property.
- Property values tend to appreciate over time
- As a general rule, property values tend to appreciate (go up) over time. This means that the longer you own a property, the more valuable it is likely to be, and the more money you can make from renting it out or reselling it. This makes the prospect of holding onto a rental property an appealing prospect for the long term.
- You can deduct expenses and interest from your taxes
- While renovating and maintaining a rental property can be expensive, there are some financial benefits. Certain costs and expenses, such as mortgage interest, maintenance costs, and insurance costs can be deducted from your taxes, saving you money on your investment.
- It can be a part of a broader investment portfolio
- Ideally, you should never put all of your eggs in one basket, and that is as true of real estate as it is any other type of investment. This means a rental property can supplement other investments, acting as a stable source of income while you engage in other, riskier ventures.
- You can sell when you are ready
- Ultimately, you do not need to keep a rental property forever, and there may come a time where it is wise to sell it. When that time comes, you should consider all your options to ensure you get the best deal for your investment.
At Stable Holdings, we assist our clients with a variety of services related to buying and selling real estate, including purchasing homes for cash. We have experience handling real estate financing, especially for developers and house flippers. If you are interested in selling your home for cash, please contact us at 516-548-6553, or visit our contact page.
