Thinking of investing in a rental property?
Owning a home is a major milestone for many people. And while most people worry about the mortgage after buying their first house, some have found a way to turn their homes into a good investment by renting it out. Turning your home into an investment home rental is a great way to secure additional income stream and build wealth in the long run. Real estate investing for beginners might be as simple as playing Monopoly where you buy properties, generate rent, and with basic knowledge of the economy, investment and risk to avoid bankruptcy; but simple doesn’t mean easy.
Real estate investing has produced many wealthy investors, but if you’re not well-versed before diving in with your hard-earned money the consequences can result to a major disaster. Like any investments, investing in a rental property have pros and cons that you need to know before diving into. With that in mind, here are a few things to consider before you start looking into investment home rentals.
The Pros and Cons of Rental Property Ownership
Everyone needs a home, but is investing for you? Understanding the pros and cons of investing on your home will help you determine if it’s a good idea or not.
Pros of Rental Properties
- a good source of passive income or steady cash flow
- less risk and volatility as the stock market
- good tax benefits like deductions from expenses or through depreciation
- long term returns as properties appreciate in value
Cons of Rental Properties
- requires cash to pay for a property manager or other property improvements
- potential returns aren’t as high as the stock market
- dealing with tenants can be a challenge
- poor liquidity unlike when you sell stock
Are you ready to buy your first rental property?
When it comes to finding a home and turning it into a rental investment, the key to figuring out which investment decision is best for you are determining if the payoff is worth the potential risks involved. No one is born an expert especially in real estate investing. By familiarizing yourself with different real estate investment strategies, and doing your homework on the pros and cons, you will get there in no time.
For your first investment home rental, consider partnering with an experienced Houston realtor to help you with the steps on buying your first home as well as your legal obligation as a landlord. And, if you choose to hire a property management company, you won’t have to address tenant issues, or repairs, which makes things easier than doing it on your own.
Working with Apogee Properties
Apogee Properties is Houston’s leading real estate management company. We work and live in Houston and our property managers are local. We’ve been in business for more than a decade providing comprehensive property management services in the Houston region ranging from a studio condo to a multi-family million dollar estate.
Apogee looks forward to hearing from you and sharing what we can offer to your Houston property. Contact us today to learn more!
