A Rental Income Real Estate Property can be a single-family residential, multi-family residential or a commercial lease property. When an income property is leveraged the owner can build great value through holding, improving, renting and building equity. Historically, long-term real estate values appreciate. Resulting in a really profitable long-term investment.
1.You Are in Control of Your Investment
Many factors impact the degree of influence you have over alternative investments. However, as Landlord you oversee contracts, cashflow and improvements among other components. As a result, this creates an opportunity to thoroughly understand your investment. If your situation is such that you’d prefer, there are management options available.
2. Property Appreciation of Highly Leveraged Assets
One advantage of investing in rental property is it allows the investor to leverage the value and cash flow making for a smoother loan approval process. Therefore, when investing in income producing property one can use a relatively small amount of cash as a down-payment while financing the remainder. Certainly, you cannot do that in the stock market!
3. Money in Your Pocket
As an income producing asset the net amount after expenses will be “money in your pocket”. You can own a rental property for years, generate a high net worth and utilize the cash flow in supporting a retirement fund or even pay off your mortgage.
4. Your Tenants Pay Down Your Mortgage
Holding a leveraged income property long-term offers great potential to pay down or completely pay off bank loans. Maintaining rental income is important in meeting this major milestone. Above all, this allows you to build big value on another’s dime. Secondly, the major reward comes when it is time to sell but can also be captured with a Refi. once the property is paid down.
5. Tax Write-Offs
As a rental property owner, you can take advantage of huge tax deductions. As a result, you could potentially save thousands of dollars annually on taxes. Some examples:
- Interest: As a landlord, you can deduct mortgage interest associated with the investment property.
- Repairs: Repairs to a dwelling are deductible in the current tax year.
- Depreciation: When the rental property is providing income you can receive a tax benefit, which is achieved by way of depreciation.
- Insurance: Another benefit that comes in handy is deductions from insurance premiums regardless of the insurance policy that is associated with your rental property.
In conclusion, there is no better time than now. So build wealth and attain financial goals with income producing real estate.
Ashurst Niemeyer Property Management is here to help! We handle both residential and commercial management of real estate. Our agents deal directly with prospects and tenants, saving you time and worry over marketing your rentals, collecting rent, handling maintenance and repair issues, and responding to tenant complaints.
For more information, contact our experienced Property Management Team at 928-9265 or www.ashurstandniemeyer.com
- Gallup. “In U.S., Real Estate Still Leads Stocks as Best Investment.”
- U.S. Government. “Saving and Investment Options.“
- IRS.gov “Rental Real Estate Income, Deductions and Recordkeeping.”