Investing in rentals may not seem like the best option, but many people can and do make a profit. Its an excellent way to earn income, though its important to realize that Phoenix rental properties can come with risks, as well. However, if you came into the property without having to pay for it, you may be able to turn that building into money.
Youre The Boss
When you invest in a property to rent it out to others, you are effectively your own boss. You make all the decisions, from which property to buy, what tenants to rent to and how much to charge. With traditional jobs, youre required to do what someone else tells you and may have a dress code and other rules. As your own boss, you can wear jeans and tee-shirts, delegate others to do tasks you dont want to do and more.
Appreciation Of Assets
By using leverage, where you invest a small amount of personal money and borrow up to 20 times more for the rest, you can be a highly-leveraged asset. Over time, that small investment can quadruple or more.
Phoenix rental properties mean that you have more money in your pocket. Its important to understand that youll want to charge rent according to whats normal in the area. Likewise, you may want to invest in property managers who may be able to help collect rent.
Its also important to understand that whatever goes wrong is your responsibility, for the most part. You will be required to keep up on maintenance and fix anything, which can take away some of that money.
Likewise, you can also look at it as though the tenants will be paying the mortgage. If you go for the popular 30-year fixed mortgage and can hold onto the property for that length of time, the money you make can go to pay off the loan.