Why become a real estate investor?

The American dream often looks like a good education, a high paying job, having a nice big house and paying off the mortgage over the years. My real estate dream used to be only as big as just having a mortgage-free, rent-free accommodation one day.

I just recently realize that my dream can be a little more ambitious. Even though I have not taken the first step yet, it dawns on me that real estate investment can be the right path for many. It can be more than just owning a home and not worrying about rental payments ever again. It can be about generating extra income, and even eventually liberate you from a 9 to 5 job.

Of course, any new venture will require money and effort. Is it worth the extra work even after spending all day at your day job? I think it is. The reason is that all this money and effort going into learning a new trade will hopefully pay off one day. I think of it as an investment, not just of money, but also of time and hard work.

Here are some of the reasons why I want to become a real estate investor:

1. Have someone else pay my mortgage

Many investors start out with renting out just a room in their house to help cover mortgage payments. Reading up about real estate investment, I realize that many choose to purchase a multi-family house as their primary residence. Here is a quick fact: the numbers of multi-family home have continued to increase in 2015. This means that more and more people are looking into this trend.

Living in one of the units and renting out the rest of the house is a great way to bring in some income to help covering the mortgage payment.

2. Earning extra income

We all can try to work hard for a promotion or a raise. The fact is, however, we can never know when that raise is going to come. Perhaps one year or two year from now, perhaps ten years, or even never in some cases. The truth is, money does not buy happiness but it always help to have extra income. This will help alleviate financial worries. It will help pay for the kids’ dance lessons, or help us have a nicer family vacation every year.

3. Savings for retirement

No matter how much you love your job, one day you would want to give it up and enter retirement. It’s fair to say no one can work forever. Therefore, preparing for retirement is a must.

Most of us now depend on our social security benefits and perhaps a 401(k) to save up for our retirement. However, is that enough? What if another stock market crash wipes out our saving nests? What if we have to downgrade to a more manageable budget because social security doesn’t pay as much as we hope for?

This is why I wanted to get in real estate investment. Even during the market crash, people still need places to live. This is why a rental house seems to be a lot more secure than other investment options. It can help replace my income stream when I retire. With that, real estate investment can help me retire without worrying about finances.