If you’ve ever owned a home, or maybe even just rented one, you’ve probably thought about buying a rental property. It’s seems easy enough, right? Not only is it a safe way to invest your money in a market that is less volatile than stocks, you can generate a passive income. If you’re smart about the property you purchase and the tenants you take on, the process can be seamless and profitable.
Here at Welcome Home North Florida, we love helping people generate passive income through rental properties and we’d be happy to show you properties that are perfect for maximizing a rental income. We’ve even provided a few reasons why we think your next home should be a rental property!
Passive Income is the Best Income.
The key to benefiting from rental property passive income is to consider the amount you can reasonably charge in rent versus your current and future expenses. Your current expenses include your known costs like your fixed mortgage payment while your future expenses include more unexpected costs that come with property repairs, potential property management services, and times of tenant vacancy when the property is unoccupied.
The best rental property investment includes rental income that exceeds all your costs which equals extra money in your pocket every month. What would you do with some extra cash coming in?
Just Say No to Taxes.
Buying an investment property comes with a handful of advantages – one being tax breaks! And this isn’t just dropping off a bag of clothes at goodwill, these tax breaks can really pay off! Typical expenses like your investment property’s mortgage interest, insurance premiums, and legal fees are all tax deductible.
Other expenses surprisingly eligible for tax deductions include marketing costs associated with finding renters, home maintenance, property management support, and even gas money spent traveling to and from your property. Just make sure you document all of it! Your account will thank you.
Time to Hit the Beach… Indefinitely.
Are you ready to retire early? Have you dreamed of running a bed and breakfast in Spain? Maybe you’ve always wanted to hike Patagonia or take an around-the-world cruise.
If you focus on finding properties with the greatest rent to value ratio while keeping your expenses and vacancy low, you can benefit from an awesome passive income. You could potentially even reinvest that rental income into additional properties and increase your earning potential significantly. Many property investors are living off the passive income generated from their properties. You could even hire a property management company and spend your days at the beach instead of in a cubicle.
Whether you want to protect your savings or get away from the 9-to-5, buying a rental property can lead to financial independence. Becoming a landlord doesn’t even have to consume your life or limit your investments to your own location. Hire a property management company and rest easy knowing your properties and tenants are being taken care of. Let Welcome Home North Florida help you find your financial independence!