Investing in rental property ownership can generate a significant amount of income. However, you first need to understand why it is beneficial to pursue this type of rental property!

1: Mortgage interest rates are super low

Very rarely in history have there been times that we see 30-year fixed mortgage rates stay around the 3.7-3.8% range. Same goes for when we see 15-year mortgage rates stay right about the 3% range. Due to this fact, this makes the benefit of buying rental property very apparent.

Due to the fact that mortgage interest rates are so low, it is now a viable option to look at interest-only loans. The upside about these loans is that the monthly payment goes down because of the fact that you wouldn’t be paying down principle. These loans allow each unit to become more profitable, which makes your life less stressful during the early years of real estate investments when there is a tighter budget due to the more limited inflow of cash.

2: Housing is shifting toward a buyer’s market.

For the first time in years, the housing market is cooling. Odds are, you’ll be able to find a property in your area at a fair market rate, where you’ll at least be able to use the rental income to pay off your mortgage and still have some profits from the rent payments alone.

3: If there is a recession then your rental property will be a saving grace

While it may be nearly impossible to predict the next recession, it is important to know how it will affect your rental property.

If you invested your money in a rental property in a busy city then when the recession comes you will be in a much more stable position in regards to your investment returns. Not only that but the value of your property will most likely increase slowly or decrease during this time. However, as long as you keep the unit rented and plan to hold onto it for a long time, you will just need to wait out the recession while still receiving a more consistent cash flow than what most people are receiving during this trying time. Eventually, nearly all real estate values end up recovering and even growing.
4: The double bottom line is unbeatable.

Even though the previous three reasons as to why you should invest in rental properties focuses on the current market conditions, it should also be noted that rental property ownership is more often than not one of the better long-term investments to pursue.
When you have a rental property, you now have two options when making money: the money that you get from rent bringing in a total profit each month, as well as your home’s value that grows.

Overall these are the top reasons that you should consider owning a rental property because not only will it yield significant income for you but it will be a savior during rough times. Due to rates being as low as they are, there is no better time to invest!

One Reply to “4 Reason to Invest in Rental Properties”

  1. thats exactly the info i needed. i would love to have my own complex one day. renting out multiple units makes more sense. i plan on being in the market for as long as the cash flow is great or time to retire. im sure its gonna be hard work at first with new routine but best option for the future. willing to sign contract for a loan. i know my credit is low right now but wasnt sure what the details were. im definately ready to get a long -term loan and build credit or maybe find a loan with fixed monthly payments on rent and bills. that way i know what to expect to pay for my share of the bills. budget is everything and i plan to invest my money into projects that will produce a great profit. just need to understand if the landlords know i wish to start a business of my own but will abide to the contract.

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