Using rental properties is one of the best decisions you can make on your path to becoming a successful real estate investor for a lot of good reasons. In this economy, ever since 2007, the renting industry has hit a huge spike. Many people would now rather rent due to financial hardship, and you as a real estate investor and property owner can cash in on this. If you only paid sixty thousand dollars for a particular piece of property, but can not, or do not have any desire to, sell it, you can begin renting it out for a positive cash flow.
So take you take this piece of property that you paid sixty thousand dollars for and begin renting it out for fifteen hundred dollars a month, that is eighteen thousand dollars of positive cash flow every year. On top of that, after a little over three years of doing that, the property has now paid for itself and every single dollar you receive after that is now one hundred percent pure profit. That is a pretty good deal considering the fact that you could also at any point take and sell that property for a profit, so the renting is just the icing on the cake if that is your intention in the long run.
continue reading…
