Question: Is Owning A Rental Property A Good Investment?

Owning a rental property in addition to your primary residence can be a way for you to build wealth, especially if you may be averse to investing in the stock market.

With a rental property, someone else pays your mortgage, and over time your equity grows.1 Nov 2018

Can you make money with rental properties?

The main way a rental property can make money is through cash flow. Simply put, this is the difference between the rent collected and all operating expenses. For example, let’s say you buy a house for $200,000 and rent it for $1,500 per month.

What should I look for in an investment property?

8 Things to Consider When Buying Investment Property

  • Plan on a big down payment. Mortgage insurance isn’t available for investment properties, so a 20 percent down payment is required to get traditional financing.
  • Enjoy being handy and fixing things.
  • Income varies.
  • Property taxes.
  • Beware of fixer-uppers.
  • Start small.
  • Choose your partners wisely.
  • Consider a REIT.

10 Mar 2016

What is a good rental yield?

What Is A Good Rental Yield? In our experience, a good rental yield for buy to let property is 8% or more. Anything under that and there might not be enough cash-flow in the property to cover running costs, mortgage payments and those unforeseen, expensive problems that sometimes crop up when you invest in property.23 Sep 2019

Are apartments a good investment?

Yes, apartments are still a good investment, but for more fundamental reasons than during the past eight years. But apartments are still a good investment for traditional reasons versus heavy appreciation, even with changing circumstances such as rising interest rates, rising property taxes and a potential recession.8 Jan 2019