It seems like just about everyone could use some extra income these days. And, while starting a side business or applying for part-time work are certainly viable solutions, another alternative could be to own a piece of rental real estate.
In doing so, not only can you collect monthly rent checks from your tenants, but in most cases, you can also build up equity in the property. So, in addition to the short-term income benefits, investing in rental real estate can also provide you with long-term financial security.
There are many different types of properties that you can choose from as a real estate investor. On the residential side, these options include single- and multi-family homes, as well as condos and apartment buildings. You could also choose to go with commercial properties, such as office buildings and retail shops.
But, before you make a long-term commitment on any type of investment property, there are some important things to keep in mind. For instance first, while real estate can be a good investment, it is illiquid. With that in mind, be sure that the funds you use to put into the property is not money that you might need in case of an emergency.
Also, unlike investing in stocks, bonds, or mutual funds, real estate will typically require a regular stream of “outgo.” In this case, you should be mindful of any expenses that you’re responsible for, such as a monthly mortgage payment, insurance, annual property taxes, and regular maintenance and upkeep.
If the purchase of an investment property is something that you would like to consider further, we can help. We’ll assist you with finding the property that meets your specifications. So, contact us to get the process started.