Benefits of investing
in rental property
Focus is on scalable income from single family houses and apartments. There are multiply profit centers like cash flow, principal paydown, tax benefits (depreciation), appreciation and capital gains when you sell the property.
Multiple Profit Centers
Cash flow: Rent from tenants can provide a steady stream of income.
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Appreciation: The value of real estate can increase over time.
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Tax benefits: Rental property owners can take advantage of tax deductions for expenses associated with maintaining the property.
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Less volatility: Rental property can provide a more stable source of income, especially in times of economic downturns.
Scalable
Investing in apartments allows you to scale your cash flow and decrease your costs by economy of scale. Even the build-for-rent concept has these same benefits. When a company builds and manages more units, it can spread out fixed costs, such as management and maintenance expenses, over a larger number of units. This can lead to lower costs per unit. Additionally, as you add more units you become more efficient and you may be able to negotiate better prices on purchases of items needed to maintain or improve the rental units.
Inflation Hedge
Rentals have been way to offset inflation for many smart investors.
This means that the income landlords receive from their rental properties can keep pace with the rising cost of living. Additionally, as the value of money decreases due to inflation, the value of real estate tends to increase, which can provide a hedge against the loss of purchasing power.
