If you’ve ever seriously considered securing a 7-figure net worth – or probably even just dreamed about it – you may be thinking about how it’s carried about. The answer may take you back! The fact is that almost 90% of all millionaires obtained their fortunes by investing in real estate.
There are indeed very few approaches to investing money that impart the kind of stability and growth that real estate can offer, especially single-family rental properties. Why is rental real estate your rapid course to becoming a millionaire? Here are just a few solid reasons why owning Arlington Heights rental properties can achieve this aim.
Monthly Cash Flow
When executed properly, owning rental properties can generate a big monthly income for you. Incredibly, not only should your rental payments cover the mortgage, insurance, and other expenses, but as a matter of fact, a lot of investors are pleased with positive net cash flows as well. Notwithstanding that it’s highly possible to acquire positive monthly cash flow with just one or two properties, many investors work their way up to a steady income by obtaining multiple properties.
In as much as 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 put to use in various ways to let you additionally increase your wealth-building potential. As an example, equity loans or refinancing a mortgage can help give you cash to invest in another property. You also realize that equity in your profit when the time comes to sell the property.
Side by side with building equity, single-family rental homes are likely to appreciate in value year over year. This can certainly increase the amount of equity you have in the home and, thereby, increase your investment activity additionally. Even though not all real estate markets see gains every year, and few markets will see home prices rise faster than others, if you pick out your location attentively, you could surely see interesting upswings in value at the appropriate time.
Investing in rental real estate is additionally the best thing to do to obtain access to wealth-building resources that most other investors don’t have. If you have your rental properties leased and expertly managed, you can spend more time on activities that directly contribute to your bottom line. Approving someone else to tend to the day-to-day tasks enables you to focus on more productive investing activities.
Investing in real estate is likewise one business that will permit you to leverage other people’s assets to sustain your upward growth. Investing partnerships and collaborations are typical, particularly with a mentor or trusted business associate. By pooling resources, you can surely do far more than you could do alone.
Another benefit that’s important not to overlook is a federal tax. A lot of tax deductions are available to investment property owners, from operating costs to mortgage and property taxes. Several rental real estate investors turn out to be paying far less tax on their monthly income than they would if it was obtained another way.
With countless potential, it’s uncomplicated to see how investing in rental real estate could be your path to being a millionaire! Although to get started on the right foot, it’s relevant to have professional Arlington Heights property managers on your team. At Real Property Management Chicago Group, we team up with 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.