Why are rentals a good investment?

 I could be here forever talking about this, so I’m going to try to keep it short. But there are a couple of things that I think really highlight why rental property is such a great investment. 

One of those things that I want to talk about is the tangibility of the investment.

You can go out, you can touch it. You see it, you have control over it. T

here is this notion of your investment being so much more tangible when you’re investing in something like a rental property versus throwing it into the market, bonds, stocks, options, those sorts of things. The idea of having a tangible investment is really something that a lot of people look for when they’re looking for a way to invest.

Another reason why it’s a good investment is the control that you have over it. 

While for some people, this might scare the daylights out of them, for other people, they really find comfort in knowing that they control their investment. 

I mean, to a certain extent, you have almost total control besides your tenant.

There are obviously natural disasters and things like that that happen, but you have a very high control over what happens to your property, what type of person you put in there, what type of tenant, and most importantly what type of return that you’re making on that property. 

I mean, you have a lot of control over what happens to your money, what happens to your property, what happens to your investment and a lot of people find a lot of comfort in this notion.

They’re not just giving it to a financial planner or putting it in a mutual fund and hoping that it does what they’re hoping it will do. 

With rental properties, you can actually make it do what you want to do, given the market circumstance, so that’s definitely another pro to it.

One other thing that I’m going to talk about is the ability of building short term and long term wealth. 

On the short term if you buy the right property that fits your goals and meets your ROI standard, then you’re going to be making money every month. 

You’re going to be earning extra cash every month that you can use for anything.

You can use it to go on that big trip you’ve always wanted to go on or pay off debt.

Maybe you’re going to use it to save up to be able to quit your 9:00 to 5:00 and leave the race and spend more time with your family or maybe you’re going to save it and snowball it and roll it into another investment property. 

But you’re building that short term wealth and at the same time, you’re building this long term wealth because the longer that you hold onto this property, you’re gaining equity in that property.

If you plan to hold it for a really long time, you could potentially pay it off down the road or I should say, you’re not going to pay it off, but your tenants are going to pay it off. 

While they paid for you to own this property and you made money along the entire process, then you’re going to sell it and make the lump sum of cash that you’re going to make on the sale of the property.

There’s definitely a pro to building the short and long term wealth and again, I could go on and on and on, but I will say that those are some of the top reasons that people get started with investing in rental property and why they feel that investing in rental property is a good thing.