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Are Rental Homes an I.D.E.A.L. Investment? PT.5

Are Rental Homes an I.D.E.A.L. Investment?

There are a lot of investment options available for us today.  Stocks, bonds, mutual funds, gold, silver, annuities, etc can all be a part of a solid retirement plan.  

for rent


Some people may claim that I am biased, and maybe that is so.  However, I firmly believe that rental homes are an I.D.E.A.L. investment and should be included in every retirement plan.  Over the next several post I will discuss why this is so and give you some ideas to help you with your real estate investment planning.

Keep in mind that there are no promised returns.  I think the examples that I give are realistic but please consult with your own investment and tax advisers.
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As we go through this series I will be using an example of  a 3 bedroom 2 bath home with a purchase cost of $100,000.  There are two reasons for this.  1. It makes the math simple.  2. That is a home that would be very readily and realistically purchased in this area and market.  In other areas the math be be different but the same logic will apply.  

Search Cobb Homes priced from $95-150,000



Income
Depreciation - tax advantages
Equity build
Appreciation
Leverage

Part 5:

Real Estate has long term, fixed rate, amortizing, financing readily and commonly available.  Other investments do not allow you to finance the purchase.  Some people would prefer to pay cash and avoid the risk of having debt on their rental property.  That is good and admirable and I would recommend it if you are financially able. However, for some people it is just not an option or they are willing to take the risk of the debt.  I would contend that if you are truly investing for the long term and have sufficient cash reserves to make payments during vacancy that the risk is really very minimal.  

Even if you are paying cash as your investment strategy, the ready availability of long term financing makes it easy for you to sell the home when the time comes.

If you missed it Here are the previous installments:  

Rental Homes- I.D.E.A.L. Investment? pt1

Are Rental Homes an I.D.E.A.L. Investment? PT.2

Are Rental Homes an I.D.E.A.L. Investment? PT.3


Are Rental Homes an I.D.E.A.L. Investment? PT.4

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Bob Southard
Broker - Owner  Atlas Realty Service LLC #75911

O:678-439-SOLD(7653)

CALL ME DIRECT: 770-656-9134

Buy a home, Sell a home, in Powder Springs, Marietta, Kennesaw, Acworth, Smyrna, Dallas, Hiram,and Cobb, Paulding, Douglas, North Fulton, South Cherokee, County, Ga. Call me for all of your real estate needs.

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Comment balloon 2 commentsBob Southard • December 16 2011 07:59AM

Comments

Hi Bob,  Rentals are still a fantastic investment.  Sure enough appreciation will come back, meanwhile.. a person cant get a return on their money like in a rental, anywhere else. Realtors and investors know this.. that's why investors are the number one buyers in most areas. 

Posted by Christine Cumming SeaRealEstate.com, Real Estate Santa Cruz and beyond 831.588.7767 (Real Estate Capitola, Aptos, Scotts Valley, Watsonville) almost 7 years ago

Thanks Christine.  Investments are great everywhere.  We are very fortunate we have a great rent to value here.  A nice 3/2.5 home for $90-100k purchase will rent for about $11-1200!

Posted by Bob Southard, e-Pro - Cobb, Cherokee, North Fulton (Atlas Realty Service, LLC) almost 7 years ago

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