Should You Invest in Rental Property?

If you've been considering investing in rental property, like most people, you're probably concerned about stocks and bonds market valuation. Let's dig deeper into some of the benefits of becoming a landlord in the Lake Martin area.

Income:

One of the main benefits of owning rental property is the ability to generate income without selling your investment. It's possible to generate high single to low double digit returns on your cash flow even with a mortgage. 

Inflation:

Rental income keeps pace with inflation. Inflation can increase the value of your property over time and reduce the burden of mortgage debt over time. For these reasons, it can be a great way to hedge against the possibility of rising inflation, which generally hurts both stocks and bonds. 

Tax Advantages:

There are tax advantages to owning rental property. You can deduct costs such as the mortgage interest, property taxes, and depreciation form your taxes and even use losses to reduce your other taxes. If you sell a property, you can defer the capital gains tax by reinvesting in another one. 

Time and Patience:

Purchasing property takes time. Especially when you're looking for a property to produce income. Make sure you have time to do all the necessary things to make sure it is an income producing property. A good REALTOR can help you out in this department. 

Managing the Property:

Managing rental property is a part-time job. Especially if you have more than one. Weigh the pros and cons of hiring a property manager and doing it yourself. There are a lot of things involved with this, such as, finding tenants, checking credit, and pre-screening involved with finding the right tenant. You should also check with state laws to be sure you are following the right procedures. 

While buying an investment property around Lake Martin may seem as easy as just buying a house and putting a for rent sign in the yard, there is a lot more to it than that. Purchasing real estate has its pros and cons. It's important to know that its not just about location, location, location. It's also about education, education, education.

Wondering if there are any investment opportunities for you in the Lake Martin area? Check out these homes for under 100k!