Residential Rental Real Estate investing is attainable. You don’t need to have a huge amount of money in the bank, investors or an MBA from UNR. Anyone can become a residential rental investor and enjoy the benefits of building a portfolio and receiving passive income.
Here’s a good scenario. You’ve purchased your first home, condo or townhouse. You notice that rental rates in the area are higher than your monthly mortgage payment. You ask the question, Can I rent this property out? Purchase a second property to live in? Maybe one that’s even bigger or with more upgrades? How would I do that? What are some of the pro’s and con’s? Risks and Rewards?
| Rewards | Risks |
| Pay off the rental home with your tenants payments | Housing market declines |
| Positive Cash Flow (Potential) | Vacancy |
| Tax benefits: | Repair costs |
| – Interest on the loan | Property Management Fee’s (Potential) |
| – HOA/CIC Payments | Tax laws could change |
| – Repair costs/improvements | Capital gains tax or 1031 Exchange |
| – Depreciation |
We’ll explain more about the risks and rewards in future newsletters as well as help you to build the vocabulary and understanding of the process. If you’re the type that likes to learn and grow, this could be the best thing for you!
We should set some ground rules. If you want to embark on this endeavor, you’ll want to ask questions…lots of questions. That’s what I’m here for. If you have a question, just reply by email or text me and I’ll reply with an answer or get you the answer. Some questions will be outside of my expertise, so I’ll need to refer you to an expert in that area. Either way, we’ll get you the answers. So lets get started!