The pros of rental properties

Purchasing rental properties tends to be a more common strategy for most real estate investors. Here are some of the major reasons why…

Rental income real estate investing is generally less stressful than flipping, as investors have more time to find and purchase a rental property due to the longer holding period. As a result, renting alleviates pressure from making quick decisions.

Rental income investing is less risky than flipping. Instead of focusing on flipping for a quick profit, rental properties are meant to be held for multiple years which results in more time to make adaptations and improvements to the property when required.

Buying rental properties can be inexpensive compared to flipping. The costs associated with flipping often include significant renovation fees and improvements. This means investors expect to put down an additional 20-30% of the purchase price for flipping costs. With rental properties, the capital can be put directly towards the purchase with an immediate opportunity for cash flow.

-With rental properties, investors get to take advantage of long-term property appreciation. At the same time, they’re are able to generate consistent income in the years between property renovations or while the
housing market is slow.

-Rental investors aren’t as affected by sudden dips in the housing market. A buy-and- hold strategy allows investors to weather the storm and wait for a more favorable market before deciding to sell.