One of the best investments you can make is into real estate because it will always hold its value, even when the market drops. After all, the market always goes back up eventually, so there’s always value in land and property.
But you can take your real estate investment to a new level by purchasing a multi-family property that you can rent out. Whether you’re really ambitious and want to purchase a large condo complex or you want to keep things simple with a 2-family home, there are plenty of perks associated with investing in a rental property, some of which are listed below.
Increase Your Income
One of the main reasons why people invest in rental properties is to increase their income without having to work very hard. Once you’ve found a great rental property and you’ve spruced it up and made all necessary repairs to it, you can rent it out at a pretty high cost, especially if you live in an area where rental prices tend to be high, such as the center of a city. This is monthly income that goes right into your pocket. The money that you make from the rent can help you quickly pay off the mortgage on the property, or even the mortgage on your home.
Use More Tax Deductions
As a landlord, you’re also entitled to more tax deductions than other homeowners. For example, you can deduct any interest that you pay on the mortgage of the rental property, such as the type of loan you’d get from Crawford Park Financial. You can also deduct the building’s depreciation, as well as any repairs that you need to make to it. Any travel that’s related to your responsibilities as a landlord can also be deducted. And if you run your own home office, you can also use this as a tax deduction to reduce what you owe.
You Can Be Your Own Boss
Other investments, such as stocks, don’t put you in control over your money. But being a landlord means that you are the boss. You can make whatever renovations you want to increase the value of your property, and you can choose how much to charge your tenants so you can make the most profits each month.
Real Estate Value Increases
Again, real estate never really loses its value, so what you spend on a rental property today will likely be less than what you would spend on it a decade from now. In other words, your investment will be worth more money when you are ready to sell, which means you can make even more money in the long run.
Investing in apartments that you can rent out is a great way to generate extra income, as well as be your own boss at the same time while reaping the benefits of owning real estate. Just beware that being a landlord does require a lot of time and dedication, so you need to be prepared to be a landlord before splurging on a rental property.