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From Real Estate Investor to Millionaire

Man in a Suit Throwing BillsIf you’ve ever seriously dreamed of obtaining a 7-figure net worth – or possibly even just dreamed about it – you may be thinking about how it’s accomplished. The answer may amaze you! The fact is that around 90% of all millionaires generated their fortunes by investing in real estate.

There are very few practices to invest money that bring about the kind of stability and growth that real estate can offer, in particular, single-family rental properties. Why is rental real estate your speedy path to becoming a millionaire? Here are various ways owning Decatur rental properties can achieve it.

Monthly Cash Flow

When executed perfectly, owning rental properties can aid you to generate an ample monthly income. As a matter of fact, not only should your rental payments cover the mortgage, insurance, and other expenses, but on top of that, numerous investors delight in positive net cash flows too. Although it’s possible to have a positive monthly cash flow with just one or two properties, various investors work their way up to a steady income by purchasing multiple properties.

Equity

Since your rental payments pay your mortgage, each one enables you to pay down your mortgage and build equity in the property. This equity can then be applied in several ways to allow you moreover to increase your wealth-building potential. By way of example, equity loans or refinancing a mortgage can help give you cash to invest in another property. You also realize that equity is profit when the time comes to sell the property.

Appreciation

Besides building equity, single-family rental homes tend to appreciate in value year after year. This can increase the amount of equity you have in the home and, as a result, increase your investment activity moreover. Though not all real estate markets see gains every year, and several markets will see home prices rise faster than others, if you pick your location heedfully, you could notice awesome upswings in value in due course.

Resources

Investing in rental real estate is moreover an effective way to easily access wealth-building resources that a lot of other investors don’t have. Whenever you have your rental properties leased and expertly managed, you can spend more time on activities that directly contribute to your bottom line. Allowing someone else to look after the day-to-day tasks enables you to focus on more productive investing activities.

Investing in real estate is furthermore one business that will allow you to leverage other people’s assets to aid you to grow and develop. Investing in partnerships and collaborations are very common, mainly with a mentor or trusted business associate. By pooling resources, you can fulfill far more than you could do alone.

Tax Benefits

Another benefit that’s important not to overlook is a federal tax. Numerous tax deductions are available for investment property owners, from operating costs to mortgage and property taxes. Most rental real estate investors end up having to pay far less tax on their monthly income than they would if it was gained another way.

 

With such potential, it’s effortless to see how investing in rental real estate could be your path to turning into a millionaire! Hence, to get started on the right foot, it’s significant to have professional Decatur property managers on your team. At Real Property Management Citywide, we collaborate 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.