Weekly Investment Feature: Real Estate Investment Groups
Looking to invest in real estate? Rental properties can be a great opportunity for return. Whether in or out of state, rental properties provide a source of regular income in addition to upward trending property values over time. While managing tenants and maintenance can become a lot to handle, property managers can be a great solution to take over leasing and tenant activity. By handing over the monthly duties, rental properties become an extra source of income without the time requirement other methods of investing might need. Financing a real estate investment like a rental property can be difficult upfront, but cutting costs by DIY-ing some repairs and renovations or lining up a tenant before closing can help to offset these costs. Rental property expenses can also often be tax deductible. The rising demand by renters for apartments can also help decrease the length of vacancy between tenants and prevent costs associated with vacancies.
To recap, some of the pros to investing in rental properties include:
Source of passive income
Property value appreciating (going up) overtime
Tax deductible expenses.
Growing demand for rental housing.
Some cons might include:
Loss of income due to vacancies.
Maintenance costs associated with tenant damage or turnover.
Substantial upfront capital required to invest.
Time needed to manage leasing and maintenance requests
While rental properties are not without their risks, they can become a great return on your investment with the right property.
