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If one investment has withstood the test of time, it is real estate. In fact, millionaires today say that it is still the best investment around.
If you're looking to get into real estate, you may want to know some of the benefits to expect. Let's talk about some of the biggest benefits of real estate investing.
The Biggest Benefits Of Real Estate Investing: Passive Income
Do you know a single person who would say no to earning some extra money on the side without having to do anything? We don't either.
If you manage the property yourself, you will have to fill vacancies, maintain the property, and be on-call for occasional repairs or issues. The average landlord should expect to spend around 4 hours a month per unit of their investment, which isn't too bad!
However, if you have the right property and the right management team, you won't have to do anything. You'll just have to sit back and enjoy the rent checks as they come in.
The Right Property Can Last Forever
If you buy in the best parts of Charlotte, you're ensuring the long-term health of your investment, which could easily last you through retirement! If you don't have a pension or a large enough 401K, what's your plan if you live into your 90s or even past 100?
Well, if you have a rental income on top of your social security, that's a great way to help you stretch out your retirement savings and ensure you have sustenance well into retirement.
Once You Have One...
Rental properties are like bacteria, they multiply. If you have one, it's a lot easier to get another. Let's do out the math.
Imagine you put an $80,000 downpayment on your first property (don't worry, it can be lower) and it has two units. If you take out a mortgage for 200,000 with a 2.9% interest rate. You'd be looking at a mortgage payment of just over $1,000.
Let's say you charge $1,200 for both units, leaving you with a potential profit margin of $1,400 a month. If you spend around $100 on each unit a month (on the high end), you will still be making an additional $14,400 at the end of the year, before the mortgage is paid off.
If you save that money up for only 6 years (more if you invest it), you'll be ready to buy a second downpayment of similar size. Then you'll have double the income, cutting down the time for your next. Again, that's not even on the ideal side of the spectrum. Each property will be different but that's a rough example of what to expect.
Get Started Today!
Now that you know some of the benefits of real estate investing, you may be interested in pursuing these lucrative investments yourself. Remember, there's a reason it's such a popular investment! Just make sure you stay up to date with our latest real estate news and reach out for help if you need it!