Are you tired of the volatility in the stock market and looking to diversify your investments?
Investing in turnkey single-family rental properties can be your path to earning passive income and building long-term wealth.
Let’s jump in and review what we believe are important steps to successfully building a single-family rental portfolio.
A Strong Strategy
Buy and hold investment properties are just what they sound like; they’re long-term properties that you purchase with the intent of holding onto them and renting out for cash flow. Many real estate investors prefer this long-term strategy over flipping because there is often less risk involved and you stand to benefit from both the property’s appreciation and the rental income. That being said, not all investment properties are created equal. I’m sure you have heard of horror stories associated with rental properties….Let’s just say you need to know what and more importantly, “who” you are doing business with!
What Should You Look For In Buy And Hold Properties?
Obviously, not all properties are created equally. When looking to begin investing in buy and hold rental properties, you need to have a keen eye and understand what makes a property valuable as a rental.
What Markets are the rental properties located in?
Is there strong population and economic growth?
What is the acquisition to rent value ratio? Is is strong because of high cash flow or does it leave something to be desired?
What is the condition of the rental property and what major maintenance items need to be replaced?
Who will be managing the rental properties and ensuring your asset is performing as intended?
Obviously, the items listed above are not everything you need to consider before investing, but it’s a great starting point. Sometimes these questions aren’t asked or are overlooked because of what investors “think” looks like a good deal on paper.
Leveraging Your Approach
As a real estate investor, you have several options for acquiring rental properties. However, there is only one method that allows you to put 20% down and own 100% of the asset. If you think about that, what other investment strategies can do the same? Not only can you acquire an asset with 20% down but the other 80% of the loan is paid down by the tenant. Oh, and you build equity, earn cash flow after all expenses and take advantage of a tax depreciating asset. Sounds like an incredible opportunity right? However, taking out a mortgage on a buy and hold rental property as a first-time investor can be risky if you don’t know what you’re getting into. For situations like this, it is often best to partner with people who have experience helping investors maximize building their real estate portfolio.
Ready To Build Your Wealth Through Real Estate?
We get it…investing in anything, including real estate, can make you nervous that you will have to work hard for your money and may be facing more risk than its worth.
The truth is, that traditional methods of investing in real estate are not your only options for building your wealth.
Here at Passive Wealth Builders, we get a thrill out of all of the heavy lifting that real estate investing requires. We love all the nitty-gritty details so much that we actually tackle them for other people.
In short, we acquire, renovate, sell, and manage real estate investment properties for our clients to provide them with a fully diversified investment strategy.
This takes all of the guessing and dirty work off of your hands and leaves you with nothing but positive cash flow.
Oh, and as for those nerves about getting started with real estate investing? You can dispose of those because we will even give you a 30-day money-back guarantee!
Obviously, real estate investing isn’t for everyone but if you would like to learn more about how to passively build and diversify your rental portfolio, click the button below to schedule a call with a portfolio specialist.