Reasons to Buy an Investment Property

When you have extra money, there are so many ways to save or invest, it can make your head spin. I’m here to tell you that real estate is no doubt the best way to invest for extra income, profit or retirement for the average person in the long term. Here is a list of reasons why you should consider buying investment property.

1. Cash Flow – If you do it right, rents will exceed all of your expenses and you will make a monthly cash flow to supplement your income.
2. Live for Free! – Buy a multi-unit property such as a two flat, three flat or four flat, live in one of the units, and have the other units cover your mortgage, taxes and insurance! Cost of housing = 0, you win.
3. Tax Write-Offs – With an investment property, you can write off the property taxes, insurance costs, interest expense and depreciation among other things which will reduce your tax liability.
4. Appreciation – In the long-term, real estate values tend to rise. By the time you sell your property, it could be worth more quite a bit more than you paid for it. As if cash flow and tax write-offs weren’t enough..
5. Leveraged Investment – By obtaining a loan, you don’t have to buy the property with cash. With many other types of investment, you have to use liquid cash to purchase in full such as stocks, bonds, CD’s, etc tieing up more money.
6. Tenants Pay Down Principle – Every year, your mortgage balance will go down as you make monthly payments. The nice thing is, the rents you receive from the tenants are actually paying your mortgage. Treat them well, they are helping you get ahead in the world.
7. Control – You are the owner of the property and you make the rules (must follow local/federal laws of course). With real estate, you have a much larger impact on how your investment performs than other forms of investment.
8. Transferability – Hold the property and transfer it to one of your loved ones, siblings, business partners. Give the gift of real estate to your son or daughter when they graduate college and save them one of the most expensive purchases of their lives.
9. Tangible – Real estate is a tangible asset. You can live in it, you can rent it, you can improve it and increase it’s value. Even when the market is really bad, it still holds some value because people will always need a place to live. Your property can’t go out of business! Even if your property is a tear-down, there is still value in the land it sits on.
10. Improving Value – Your ability to manage your property will affect your returns for better or worse. In real estate, you can increase your values! You don’t have to rely on a CEO to make good decisions for shareholders, just get good tenants, take great care of your property and know your market.

I am a firm believer in the power of real estate to increase your wealth and provide supplemental income. There are so many reasons why it’s a great investment and I love sharing my experience and knowledge with others. Anyone can do this and everyone should.

Learn more at my website, www.chicagoREinvestment.com.