Investing in residential real estate can be a profitable way to get some extra income, or even to earn a full-time living. Not only do you stand to receive monthly income from prospective renters, but if you maintain the mortgage in good standing it can help your credit score as well. Another helpful benefit is that you will add assets to your portfolio, opening the doors to other financial opportunities:
Provides extra income from vacation renters.
Investing in a home, apartment or building, especially one in a nice location, can bring in vacationers that are willing to pay a nice rental fee in exchange for having their own living quarters for a few weeks or months of the year. This would give you the opportunity to rent seasonally and have two or three tenants in the home during a given year, each paying a set amount for their time in the property.
Of course, yearly rentals can also prove profitable, giving you the money to pay the mortgage through rent payments from tenants, and even having some profit from the monthly amount you set. Advertise for vacation renters in travel magazines and on community bulletin boards.
Gains more tax deductions.
A rental property can provide valid business deductions in your tax return since rental real estate is essentially a business. All the travel expenses you incur checking up on the properties, payments to people who manage your property or money spent to upgrade it can be deductible. This helps to considerably increase your tax benefits when it is time to sell the investment property. Consult with a real estate attorney to make sure you take the most deductions and keep good records.
Serves multiple purposes in the future.
One of the key factors in being able to use your residential real estate investment in different ways is buying in the right area. Be sure to consult with a real estate agent you trust that has specific knowledge about buying real estate for investment versus for living in. They can give invaluable pointers as to where is the best neighborhood to buy a place that will attract suitable renters.
When you find the right real estate investment property, you will own something that you can take advantage of in many ways in the future. You may want to use it to retire in, use it as a vacation home for yourself, or gift to one of your children.
Residential real estate can be a safe and lucrative investment with many benefits when you go into it with your eyes open. To learn more, contact a company like Schulze Howard & Cox.Share