Can you become wealthy by owning investment properties? Some of the wealthiest individuals in the world have made their fortune from real estate. Think of Arnold Schwarzenegger, Ray Kroc (McDonald’s founder), and even Vanilla Ice. One of the positives about real estate is that it is a tangible object that you can touch, wrap your arms around and even live in! Shelter is one of the three basic needs every human being requires, and a home will never go out of style.
Why Invest in a Single Family Home? Investing in single family homes is the simplest way to get started in the rental property business. It’s easy to grasp this concept and your financial risk is low compared to other forms of investing. It may be a good time to purchase property, particularly if you intend to it rent out. In the current buyer’s market, property supply exceeds demand. That means sellers are often willing to negotiate on their asking price to secure a sale.
Disclaimer: We are not attorneys and we are not giving legal advice. For legal advice and/or questions please contact an attorney.
Here are 6 common questions to keep in mind about owning an investment property:
1. How many rental properties do I need to receive a good income?
Honestly just depends on your goals, if you’re going to be using the rental income as active or passive income, some investors have one property, some have five, some have 50. It just depends on what your goals are. As long as you’re either breaking even or being cash positive, I would say that that is a great way to be an investor.
2. If I buy a new build property, will I have maintenance issues?
When you buy a new build property as a rental, it’s important to remember that there are still maintenance issues that can arise. Oftentimes there’s still items that need to be taken care of on the outside of the property such as adding a new fence, but sometimes items on the inside don’t work properly right off the bat. So then you’re in a position where you’re doing a lot of coordinating between the Home Warranty company, with the tenants inside the property.
3. How long until I make my money back on my investment property?
Owning an investment property is a long term game, you might not always see a monthly profit, but over time rental prices will likely increase which will lead to increased value and equity. Of course, the goal is to be cash positive each month, but it’s important to be realistic about when you initially start out, you might just be breaking even.
4. Can you really earn passive income with a Denver investment property?
In short, the answer is yes, it can sometimes take time for the value of the property as a rental to outweigh the monthly costs of owning the property. But over time, a rental can definitely be a source of passive income.
5. Is owning an investment property stressful?
6.¿Es estresante mantener una propiedad de inversión?
Puede ser estresante para usted si no está familiarizado con la ley de administración de propiedades, si tiene inquilinos difíciles o tal vez muchos gastos de mantenimiento. Al contratar una empresa de administración de propiedades profesional, ellos se hacen cargo de todo el estrés y pueden brindarle tranquilidad para que usted no tenga que preocuparse por eso.
If you are a resident and need more information, please contact our maintenance team