There are several joys involved with owning investment property. You hear a lot about the negatives, and there are definitely negatives, but there are great things about owning an investment property as well.
This is an opportunity to have someone else pay your mortgage payment as the house appreciates and gains value. You’re contributing to your wealth, and increasing your ability to save for any number of things.
Source of Income
Owning an investment property means you have a steady source of income from your Overland Park tenants. There will be periods of vacancy where you aren’t earning anything from your property, and you need to be prepared for that. But generally, it’s a steady source of rental income.
Diversification of Income
When you purchase investment property, you’re diversifying your overall portfolio. Instead of just being in stocks and bonds, you’re doing something different by owning real estate.
Owning investment property is really low risk, especially compared to other types of investments. It’s highly unlikely that a property will disappear and the land will suddenly have no value. Most properties appreciate and grow in value, which makes you money. And, you’ll always “own the dirt” as my dad used to say. That’s a good thing and less risky.
You can put as little as 20 or 30 percent down on a property. You then have a large investment for the amount of cash that you’ve actually had to put in. So, you’re highly leveraged but at a very low risk. That allows you to grow your wealth faster because you can own more properties with less risk or investment.
The IRS isn’t always our friend, but there are lots of great tax write-offs and advantages to owning rental properties. This is something to consider if you’re wondering whether or not to invest.
These are just some of the joys of owning investment properties. If you’d like to talk more, please contact us at Home Rental Services. We can answer any of your questions about property management.