The average price of a home in the United States is $357,319.
If you think that’s high, you should also keep in mind that the average price has increased by around 10.8% over the last year. This means that if you invested in a property worth $100,000 last year, that same property would be worth around $110,800 today.
Investing in real estate is one of the best decisions you could ever make. This is why landlords around the country are flocking to snatch up even more real estate. The important thing to remember is that you can start your journey with a smaller investment than you may think.
Want to learn more about becoming a real estate investor? Read on for a quick guide on real estate investing and how you can build your own property portfolio.
The Benefits of Investing in Real Estate
Investing in real estate comes with cash flow benefits. This is because the value of your property will rise but will also generate income for you every month. In this way, a single investment can provide you with multiple sources of wealth.
Real estate is known as a natural hedge against inflation, so your investment will always be secure in that regard. However, the income that you generate from the property can be used to purchase additional property. This is the fastest way to build a property portfolio.
Investing In Rental Property
Investing in rental property is much easier than many people think. This is because you don’t need to have $300,000 in cash to purchase a $300,000 home. Most banks will require you to have a 10% to 20% down payment, with the rest of the money borrowed from the bank.
This means that you only need $30,000 to buy a $300,000 home!
The rest of the money will need to be paid off over 20 or 30 years. However, the rental income that you make from the property should be able to cover the mortgage payment. This way, you can end up with a net profit every month while still building equity in your property.
Mortgage Tips for Landlords
When it comes to securing a mortgage loan for your property, it’s important to get the best possible interest rate. Most interest rates for mortgages can range from 2% to a high of 5% in some cases. This rate is entirely dependent on your personal financial history and credit score.
Before locking in an interest rate, be sure to negotiate so that you know you’re getting the best deal. You can also shop around at other banks to make sure that you’ve partnered with the right bank for your property.
How Property Managers Can Help
Property managers make your life incredibly easy. This is because they can handle all the day-to-day aspects of managing your property for you. From collecting rent to drafting income statements, they do it all.
Partnering with a property manager saves you time but can also help you maximize your investment returns. In this way, they can save you money as well.
Start Investing In Rental Property Today!
If you’re looking to diversify your portfolio, investing in property is always a great idea. Whether you’re looking for rental apartments or freestanding homes, real estate can grow in value while also providing you with income every month.
Partnering with a property management company can take even more stress off your shoulders. This is because we offer a wide range of services to make the lives of landlords easy. Click here to learn more about these essential services.