Real Estate Rentals

Real Estate Rentals

If you have ever considered the investing niche of real estate rentals, you are not alone. Rentals are a great way to start real estate investing to earn a passive income and buy back precious time. Real estate rentals are a profitable option, whether you’re looking for a side-hustle or even to replace your salary permanently.

Why buy real estate rentals

1. High return on investment

Real estate rentals are known for having a high return on investment. Your rental income not only goes toward the marginal expenses but to the mortgage loan interest as well. The profit you make from rental payments can be leveraged for other projects that grow your wealth and continue producing a passive income.

2. Diversify assets

There is power in diversification. Compared to other forms of investing, real estate is the only one you can pretty much count on to appreciate over time. The real estate market is generally less volatile than the stock market and is a safe bet to build your portfolio as your assets appreciate in value.

3. Tax benefits

As a rental property owner, there are tax deductions you can qualify for, such as mortgage interest, depreciation, upgrades and repairs, home office, business trips, advertising, and insurance.

4. Protection against inflation

Real estate can serve as a hedge against inflation. Even if interest rates and inflation increase, your monthly mortgage payment will stay the same. This will allow you to ride the wave of inflation while protecting your wealth.

5. Passive income

The best income is that which you do not have to work for actively. With passive income, your money works for you. After your initial investment in the property, you can sit back and collect your monthly rental payments. You can even hire a property management team to take care of the day-to-day matters such as tenant screening and handyman repairs.

How to find the best real estate rentals

1. Research the location

Real estate is a great investment, but that doesn’t mean all properties are a good investment. Do some research on your target area and consider factors such as job hotspots, proximity to schools, and whether people are generally coming or going.

2. Envision your ideal renter

You’ll need to know the demographic you will be marketing to and preparing the property for. Consider who will be moving to the area and for what. For example, a studio in the city for young professionals, or a single family home in the suburbs close to schools for a young family.

3. Explore financing options

For your rental purchase, you have a few financing options. Going with a traditional lender will generally lead to lower interest rates, but you may have difficulty qualifying. Hard money and private lenders are viable alternatives. You’ll need to have a good understanding of your “borrowing position,” aka your financial standing, to see what loan terms you will qualify for.

4. Estimate your earnings

Now it’s time to learn all there is to know about a property to see if it’s a good fit. If the property was previously a rental property, ask the current owner about rental payments, taxes, homeowners insurance, and renter prospects. If it was not a rental property, you could do some digging online to see what similar properties in the area are renting for.

5. Invest in yourself first

Before jumping headfirst into real estate investing, do what you can to prepare yourself and consider educational courses. Seek out the wisdom of experienced investors and learn from those who came before you to avoid making unnecessary mistakes. This can help you start your business on the right foot, saving you time and money from the get-go.

Intro to Real Estate

If you are interested in learning about real estate rentals, consider our team’s real estate education courses. We know firsthand the freedom and possibilities that come with real estate investing, and we want to share what we know.

Our courses are for those looking to leave their 9-5 in pursuit of something more fulfilling, no matter their prior experience or learning style. We use real-life investing scenarios to effectively equip our students with the tools they need to succeed.

If you are ready to invest in your future, start by investing in your education. Click here to contact us today.


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