Cliff Turner - Rental Property Investing Secrets

Rental Property Investing Secrets

The Real Estate Investment Guide For Beginners On Generating Wealth & Passive Income With No Money Down & Without The Headaches, Stress Or Worries

Introduction

Congratulations on downloading Rental Property Investing Secrets : The Real Estate Investment Guide For Beginners On Generating Wealth & Passive Income With No Money Down & Without The Headaches, Stress Or Worries , and thank you for doing so. With the rising financial challenges and high economic depression, having a successful investment has become a dream for many people, particularly in the real estate sector. By downloading this book, you have taken the first step towards unmasking the secrets for successful rental property investment. The information that you find in the following chapters is very important as it will help you to take control of your financial life immediately and become one of the most successful investors in real estates.

To that end, this book provides an in-depth overview of rental property investment, highlighting the key financial strategies you can adopt to be able to invest in your first rental property. It covers different reasons for investing in rental property, how to get finances for your first purchase, and possible financial plans that create a cheaper option for purchase. You will be able to understand the existing relationship between a property owner (landlord) and tenants, and how this impacts the overall condition of the property. The book also covers the risks associated with this type of investment and how to avoid them. By minimizing risks, you will be able to increase your chances of success in rental property investment.

There are plenty of books on this subject in the market, thanks again for choosing this one! Every effort was made to ensure it is full of as much useful information as possible. Please enjoy!

Chapter 1: Introduction to Rental Property Investing

T oday, generating high income from investment has become trickier due to the rising financial uncertainties. The stock market continues to hover near all-time highs, and is becoming significantly overvalue according to several economic metrics. At the same time, uncertainty and increased volatility have become a norm in investment due to macroeconomic and geopolitical factors. Meanwhile, the interest rates are historically low, making stock or bond investment to be most unattractive and tricky business for investors. With the dilemma seemingly stacked among income investors who are looking for the safest place to invest their savings, what should one do?

I believe that this is the time to consider less conventional alternatives like investment properties. In a survey recently conducted by economic scholars, up to 97% of investors indicated that they are intending to increase their capital allocation to property investment in the coming months. When investors consider that real estate is the only investment that has historically generated higher rates of return compared to bonds and stocks, it is not surprising at all.

If you are new to the real estate industry, the great way to get started is to invest in rental properties. Not only can owning a rental property help you to accumulate wealth, but it can also set you up for a financially stable future. That said, there are several benefits of owning a rental property to pass over. In this chapter, we are going to learn the basic concepts of rental properties, why this type of investment can help you retire faster, and the amount you need for this type of investment. As well, we will cover how much money one needs to invest in real estate, how to invest with less cash, and the potential risks/pitfalls of rental property investing.

What Is Rental Property Investment?

A rental property investment refers to the real estate investment in which a property is purchased with the intention to earn a return on the investment (ROI) through rental income. Such property may be held by a corporation, a group of investors, or an individual investor. A rental property attracts buyers who want to have a steady stream of income. An ideal investment is owning a house or a home in an attractive neighborhood with basic amenities such as good schools and a supermarket. It can be both an investment and vacation or second home.

There are three types of rental properties for investment. These include:

Residential Rental houses are a common way for many investors to supplement their revenues. Purchasing a residential property and renting it out to tenants enables an investor to collect his/her income every month. These may include a townhome, a single-family unit, a condominium, an apartment, or other types of residential structures.

Commercial Rental property does not have to be residential. Some investors may purchase commercial properties that are used for business purposes and rent them out. The improvement and maintenance costs of these properties may be higher, but the returns are usually bigger because of the higher rents associated with the leases. Such buildings may include retail store locations and commercially-owned apartments.

Mixed-use This type of rental property is used simultaneously for both residential and commercial purposes. For example, a building may have a retail storefront on the ground floor like a restaurant, bar, or a convenience store, while the upper floors have residential units.

Contrary to the common knowledge and real estate books and courses, rental properties investment is not a strategy that is used to earn passive income. In fact, it is one of the most time-consuming and active forms of real estate investment, which one should engage in for high returns.

Why Rental Properties Can Help You Retire Faster Than The Stock Market

I like comparing the returns of rental properties with that of the stock market because the latter is an investment vehicle that all of us are often taught to use. Whether it is mutual funds, individual stocks, REITs, or index funds, investors are always told that the best way to invest and save is by putting their money in the market. However, the problem with investing in stocks is that we are relying solely on the stocks to increase our revenue. Retirement calculators function on the basis of the stock market. The make investors guess when they will die in order to determine the amount that they should save. This means that with stock market, we run the risk of running out of money if we live too long or live behind too much money if we die too soon. Thus, the benefits of investing in rental properties include, but are not limited to: