919 Realty
  • MAIN
  • ABOUT
    • 919 BLOG
    • TESTIMONIALS
    • PREFERRED VENDORS
    • VIDEO ARCHIVES
  • BUY
  • SELL
    • HOMEVALUE
    • TOOLKIT
  • SEARCH
  • CONTACT
  • MAIN
  • ABOUT
    • 919 BLOG
    • TESTIMONIALS
    • PREFERRED VENDORS
    • VIDEO ARCHIVES
  • BUY
  • SELL
    • HOMEVALUE
    • TOOLKIT
  • SEARCH
  • CONTACT
Picture
Whether you seek home buying tips, want insight on local happenings, or just ready to enjoy the random weird story, check out our blog.

SIMPLE WAYS TO INVEST IN REAL ESTATE.  PART 1 OF 5:  BASIC RENTAL PROPERTIES.

1/10/2017

1 Comment

 
Picture
Buying real estate is about more than just finding a place to call home. Investing in real estate has become increasingly popular over the last 50 years and has become a common investment vehicle.

Although the real estate market has plenty of opportunities for making big gains, buying and owning real estate is a lot more complicated than investing in stocks and bonds. In this article, we'll go beyond buying a home and introduce you to real estate as an investment.

PART 1 of 5:  Basic Rental Properties

This is an investment as old as the practice of land ownership. A person will buy a property and rent it out to a tenant. The owner, the landlord, is responsible for paying the mortgage, taxes and costs of maintaining the property.
Ideally, the landlord charges enough rent to cover all of the aforementioned costs. A landlord may also charge more in order to produce a monthly profit, but the most common strategy is to be patient and only charge enough rent to cover expenses until the mortgage has been paid, at which time the majority of the rent becomes profit.

Furthermore, the property may also have appreciated in value over the course of the mortgage, leaving the landlord with a more valuable asset. According to the U.S. Census Bureau, real estate has consistently increased in value from 1940 to 2006, then proceeded to dip and rebound from 2008 to 2010 and has been increasing overall.

There are, of course, blemishes on the face of what seems like an ideal investment. You can end up with a bad tenant who damages the property or, worse still, end up having no tenant at all. This leaves you with a negative monthly cash flow, meaning that you might have to scramble to cover your mortgage payments. There is also the matter of finding the right property. You will want to pick an area where vacancy rates are low and choose a place that people will want to rent.

Perhaps the biggest difference between a rental property and other investments is the amount of time and work you have to devote to maintaining your investment.

When you buy a stock, it simply sits in your brokerage account and, hopefully, increases in value. If you invest in a rental property, there are many responsibilities that come along with being a landlord. When the furnace stops working in the middle of the night, it's you who gets the phone call. If you don't mind handyman work, this may not bother you; otherwise, a professional property manager would be glad to take the problem off your hands, for a price, of course.

SOURCE:  http://www.investopedia.com/articles/pf/06/realestateinvest.asp
TO FIND OUT MORE, CLICK HERE TO CONTACT US
1 Comment
Julia Parsons link
8/25/2018 09:07:39 am

There is no doubt that investment in real estate assures steady cash flow as compared to stocks. However, an adequate amount of research should be conducted prior to the investment to exist in such a field and make a profit. Buying rental property could be considered as the most convenient way of investing in real estate property. However, one should be very careful while investing in rental property. A lot of factors should be considered prior to the investment. Location of the rental property is one of the important criteria of selection.

Reply



Leave a Reply.

    Archives

    August 2019
    July 2019
    April 2019
    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    January 2018
    December 2017
    November 2017
    October 2017
    September 2017
    August 2017
    July 2017
    June 2017
    May 2017
    April 2017
    March 2017
    February 2017
    January 2017
    April 2016
    March 2016
    February 2016

    Categories

    All
    FIRST TIME HOME BUYERS
    GRANT PROGRAMS
    HISTORY
    HOMES
    HOMESIDE
    HOMETOWN HEROES
    HUMOR
    INSPIRATION
    INTERESTING FACTS
    INVESTING
    LENDERS
    LISTINGS
    PRICE REDUCTIONS
    REAL ESTATE
    SELLERS
    TIPS

    RSS Feed


919 Realty / Keller Williams Elite     /     245 NC Highway 54 East, Suite 101     /     Durham, North Carolina 27713     /     919.641.5819     /     919realty.com
Picture
© COPYRIGHT 2016. 919 REALTY.  ALL RIGHTS RESERVED.