Investing in Real Estate Rentals: You Can Gain Wealth.
Real estate investing is one of the smartest investments that anyone can get into. By investing in real estate rentals, you’ll be investing in something tangible and within your control. Unlike stocks and bonds, where some CEO is making decisions using your investment dollars, investing in real estate rentals gives you the power over success or failure. To get started, here are some things you should know about investing in real estate rentals.
Investing in Real Estate Rentals: How to Determine a Good Rental Property
In order to ensure maximum occupancy rates and cash flow, it’s important to know how to determine a good rental property. There are several things to consider when deciding where to buy a property for your rental profile.
1. Local Amenities
Prospective tenants look for local amenities, so you should look for the same in your rental properties. Amenities such as nearby parks and playgrounds, local coffee shops and grocery stores will all be positive assets to your rental property. Additional amenities like neighborhood watch programs, street lamps or a nearby police stations can also be highlighted when marketing your property.
2. Good Schools
If you’re hoping to attract families for your rental, it’s important to buy in areas with good school ratings. Not only will you attract more renters, but families with children tend to rent long-term instead of moving around frequently. Securing long-term tenants will help your real estate rentals continue to grow.
3. Opportunity For Cash Flow
If you’re hoping to generate some cash flow from your rental in addition to the appreciation value, you’ll need to plan ahead before deciding whether or not to buy a rental property. Factor in any monthly costs you’ll incur, such as property management fees or utilities, to see if you’re on track to make a profit. Even if you only generate a few hundred dollars in positive cash flow, that can make it worth it to invest in that rental property.
Investing in Real Estate Rentals: Investment Strategy
One of the most popular rental property investment strategies is the BRRR method. BRRR stands for buy, renovate, rent, refinance. It’s popular because it works. Plus, you can use this method on any rental property, even if it’s a C or D class property.
With the BRRR method, you improve a distressed property by rehabbing it, then rent it out at market rates. Since the property is now worth considerably more than what you paid for it, you can then refinance it and pocket the difference. With the extra cash, you can make a down payment on a second property, use the BRRR method on that property, and so on. This rental property investment strategy is a great way to get in on the real estate market from the ground floor and work your way up to owning multi-family real estate properties.
Investing in Real Estate Rentals: Tax Deductions on Real Estate Rentals
Once you own your first real estate rental property, you’ll be able to benefit from many tax deductions. For example, you can deduct property management fees, property repair expenses, advertising fees, and any software you have to subscribe to in order to efficiently run your real estate investment operation. These deductions help to offset the profits you make from your real estate rentals, as well as other income you receive from other sources. There are lots of tax deductions to keep track of, so it’s smart to hire a tax professional who has experience with real estate investing. This will ensure that your deductions comply with all tax regulations and ensure you’re able to take advantage of all eligible deductions.
Investing in real estate rentals can be a great way to set you and your family up for financial success. Real estate investments are often profitable, but when you educate yourself and use smart real estate strategies, you stand to make larger gains. Surrounding yourself with a trusted team that can help educate you and support your goals is key for managing successful real estate rentals.
SWFL REIA is dedicated to helping members make profitable and well-thought-out residential investment choices via our content-rich meeting and collaboration with like-minded investors.
The Southwest Florida Real Estate Investment Association is the leading source of SWFL real estate investing events that provide investment education and networking in southwest Florida. We analyze the housing market and foreclosures and provide information, education and networking events in order to build a network and knowledge base for investors and potential investors. Our members include real estate agent, brokers, investors, hedge fund managers, rehabbers, wholesalers and more.
Our SWFL REIA General Meeting is held in Fort Myers where we provide education on hot topics in investing and an opportunity to enjoy the camaraderie of your fellow investors. You’ll get a chance to ask for advice from successful real estate professionals and even make a few deals on your latest projects.
To become a member, anyone can register as an individual, a couple, or a corporation. Being a member opens the doors for endless networking opportunities, advice from members with decades of experience, new ideas from entrepreneurs, camaraderie with those just beginning, and deals and contracts done in the meeting room. For those interested in Cape Coral rental property investment and/or Fort Myers rental property investment, SWFL REIA will be able to provide a network to help launch a successful investment career.
The SWFL REIA is known and respected as a source of current, actionable and useful information about the housing market in the area that we meet.
We meet twice a month.
One of the premier sources for real estate investing networking and education is the SWFL REIA. In the real estate world, the SWFL REIA is different in that they do not do information product sales. Their meetings are focusing on the best ways of investing in real estate by collaborating with other property investors who are sharing their experiences.
We look forward to meeting you at a meeting soon!
Click here for membership information
Get our meeting notices and market data emailed to you.