Should You get an investment property? Here's My Take
I don’t know if it’s for everyone, but as a licensed real estate agent, broker and investor myself, I believe owning a rental property can be helpful for these reasons…
It gives you flexibility with cash flow and is almost like another savings account. People think it can be a lot of time, energy and work. But if you buy a property that’s already well-maintained, it’s really not that hard. There are a lot of apps, programs and even property managers that you can look into for collecting rent and dealing with problems. Of course, property managers cost so that will eat into a little bit of your profit.
Ask yourself this: Are you trying to make cash every single month, or are you trying to have someone pay down your mortgage? If the latter you could completely pay off your mortgage in 15, 20, or 30 years. From there, you’re collecting the entire rent.
Let’s say you want to create profit on a monthly basis. That depends on how you purchase the property. You’ll have to buy something for a really good value and rent it out for a high amount so you can earn that difference. I personally like to buy something that needs work, put some sweat equity into it, and then rent out for fair market value. I’m collecting that difference and putting it back into the mortgages. This is my long-term retirement plan, no matter what the stock market is doing.
Owning properties has allowed me to increase my net worth to where I can leverage these properties toward buying something else. Recently, I refinanced all my properties, took that equity out and used it on some fun stuff.
I think if you have the money, will, time and expertise, I don’t see a negative to buying an investment property. Check with your CPA and lawyer if you want to go down that route. When you’re ready, The ART of Real Estate is prepared to show you some of those properties and be your guide.