Advantages of Owning Rental Real Estate
Are you thinking about buying rental Real Estate in Southern California but don’t know if it’s the right decision for you to make or not? In this article, we will cover some of the advantages that you will enjoy when investing in rental Real Estate.
Advantage #1 – Fixed Expenses
The first advantage of investing in rental Real Estate in Southern California is that you will have fixed expenses for as long as you own that rental property.
Some of the most common expenses that you can expect to pay to include your mortgage, taxes, Homeowner Association Fees (HOA) and property management fees.
Let’s say that your expenses total $2,000 per month but you’re renting the property for $2,100 per month. This means that you will enjoy $100 per month positive cash flow or $1,200 for the first year.
The longer you own the rental property, you can expect to make more income from it because with general rent appreciation being between 2% and 3% per year, the amount of money that you make from your rental each year will only go up while your expenses will stay the same.
Advantage #2 – Owning Rental Property Is an Asset
When you own rental property in Southern California you will own an asset that will only continue to appreciate in value while your income and cash flow continue to rise over the years that you own it.
Advantage #3 – Rental Property Can Be Passed Down to Your Heirs
Yes, it’s true that rental property is a great buy and hold asset but what’s also important is that it’s something you can pass down to your heirs. This is huge because you can pass down an asset to your heirs that will continue to appreciate in value for the over their lifetimes while producing income for them as well.
Contact the Fred Sed Group
To learn more about the benefits of owning rental property, or to view a list of rental properties for sale in Southern California, contact the Fred Sed Group today by calling us at (800) 921-9231 or connect with us on Facebook.