Property management is not new and you have probably read millions of articles and books that talk about the benefits of owning a rental property. Let me discuss to you what it’s like to own a rental property.
There are a lot of benefits in owning a rental property. It is actually a strong investment technique. But if you cannot explain the benefits in very simple terms, that just means that you don’t understand them fully.
Here is a very straightforward, no-nonsense explanation for you.
- Cash Flow
Rental payment every month should cover all the expenses on your property with some leftover. That leftover money is money in your pocket.
As mentioned above, tenants will pay your mortgage through monthly rental payment. Isn’t it great that you don’t have to pay anything and whatever is the cost of the mortgage is money earned? But wait! there’s more! It is tax-free, too.
- Tax benefits
Tax-free income… How cool is that? Income from your rental property is basically tax-free. You can write-off depreciation costs on your properties which cancels out any taxes on your income. That means more money in your pocket.
When your property appreciates and you decide to sell it, it is additional income in your pocket. Plus, you can get your appreciated income tax-free if you 1031 exchange.
So, what is great in rental properties?
- Cash flow every month.
- The equity is free
- Extra money direct to your pocket because it is tax-free.
- You can make money through inflation when your property appreciates.
If this is the kind of profit that you can get from a rental property, wouldn’t you consider this a great investment?
Isn’t it amazing to know more about the benefits of rental properties? If you are more of a flipper, wholesaler or whatever mode of investment you have, make sure that you are cleverly investing in passive investments such as rental properties.
RJ Pepino is Co-owner of Columbus Turnkey Houses alongside David Payerchin licensed Realtor with ERA Real Solutions Realty. Together they have bought and sold over 300 homes since 2005.
They offer investors a full-service turnkey real estate solution. Call today for a free consultation 614-285-3600 if you are looking for Columbus cash flow properties, Columbus wholesale properties, Columbus investment properties, Columbus real estate, Columbus turnkey houses is your premier source for Columbus investment properties.