If you’ve ever thought about getting a 7-figure net worth – or perhaps even just dreamed about it – you may be considering how it’s achieved. The answer may shock you! The fact is that approximately 90% of all millionaires earned their fortunes by investing in real estate.
There are certainly other methods to invest money that give the kind of stability and growth that real estate can offer, mainly concerning single-family rental properties. Why is rental real estate your most rapid means of becoming a millionaire? Here are several reasons why owning Alpharetta rental properties can make it real.
Monthly Cash Flow
When carried about rightly, owning rental properties can have you generating a decent monthly income. Incredible as it seems, not only should your rental payments cover the mortgage, insurance, and other expenses, but on the other hand, investors take delight in positive net cash flows. Though it’s presumably possible to obtain positive monthly cash flow with just one or two properties, some investors work their way up to a steady income by acquiring multiple properties.
Equity
Seeing that your rental payments pay your mortgage, each one allows you to pay down your mortgage and build equity in the property. This equity can then be used in a lot of ways to help increase your wealth-building potential. Take one example, equity loans or refinancing a mortgage can help give you cash to invest in another property. You also see equity in profit when the time comes to sell the property.
Appreciation
As well as building equity, single-family rental homes could appreciate year over year. This can increase the amount of equity you have in the home and, therefore, increase your investment activity furthermore. Notwithstanding, not all real estate markets see gains every year, and quite a few markets will see home prices rise faster than others, but take note, if you pick your location conscientiously, you could certainly see amazing upswings in value eventually.
Resources
Investing in rental real estate is likewise the best means to acquire wealth-building resources that various other investors don’t have. By the time you have your rental properties leased and expertly managed, you can spend more time on activities that directly contribute to your bottom line. Authorizing someone else to attend to the day-to-day tasks permits you to focus on more productive investing activities.
Investing in real estate is moreover one business that will allow you to leverage other people’s assets to encourage you to expand. Investing partnerships and collaborations are prevalent, in particular with a mentor or trusted business associate. By pooling resources, you can carry out far more than you could do alone.
Tax Benefits
Another benefit that’s important not to overlook is a federal tax. Several tax deductions are available to investment property owners, from operating costs to mortgage and property taxes. Numerous rental real estate investors wind up paying far less tax on their monthly income than they would if it was attained another way.
With a very great deal of potential, it’s straightforward to see how investing in rental real estate could be your path to turning out to be a millionaire! However, to get started on the right foot, it’s essential to have professional Alpharetta property managers on your team. At Real Property Management North Point, we provide assistance to rental property investors to assess markets, set accurate rental rates, and even locate off-market properties for sale.
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.
