6 Reasons why you Should Invest in Rentals!

[Jorge Vazquez]

Today we're going to talk about what are the most significant advantages of buying rental properties.

The first one is passive income. Perhaps the most significant benefit of owning rental properties is the passive income you get because your involvement is very little. You continue getting that cash flow monthly. It's a great supplement to retirement, or it could just be your retirement plan. Also, the tax on the income is treated differently as income tax. Hence, there are some benefits behind it, and you should always contact your tax advisor to confirm this information since I'm not a tax advisor.

Number two is the flexibility to sell at the right time when the market calls it. When you have a rental, you dictate when you sell your property, the market goes down; you continue renting the property, cash flowing, the market goes up, you terminate the lease and sell it very simply.

Number three is having the option of moving back even though we don't plan to move back. Still, the fact that we have the flexibility in case something happens to your property "you need to do a major repair in your primary home," you have a place to stay, or you want to sell your main uh primary property now you have more options. Therefore you can make better decisions and not lose thousands of dollars by rushing through the process.

The number four is appreciation. No matter what the market does, real estate is going to continue going up. You can see it historically even on the biggest collapse on the market in 2008, where real estate bounced right back after a few years, and it's more expensive now than it was at the peak in 2006. so real estate will always go up. It's just a matter of time. The beauty about having a rental is that it's okay if it goes down on a short-term basis. No problem, you continue renting until it is the right time to do so for you to cash in.

Number five is diversification. Suppose you're investing already in the stock market and bitcoin. In that case, add real estate, diversification in real estate is another reason you want to invest in real estate and not only in one particular asset. I know a lot of you have your 401k 529 plan for college for the kids. You know you're planning you're setting up our retirement plans on the stock market, but what about real estate.

Number six is because "I say so," but no, seriously, I've been in this market for 20 years. I've done 3,000 transactions, I've made every mistake you could think of, and even on my worst mistake when I bought a rental at the peak of the market, if I had it today, I would be killing it even more than I'm killing it now. So I'm more convinced than ever that as long as you have a plan to do a stress test, your properties to make sure that if the market goes down, you can still cover your liability. So you put a plan in place to keep buying away. You're going to do excellent; remember always to keep some reserves.

Venturing into the world of real estate investing can seem like a daunting task, but with the right guidance and information, you too can ace it!