The real estate market may differ from year to year depending on different variables, however one thing is for certain, rental prices increase as inflation rises. Having multiple properties for residual income is the goal of all real estate investors. Your return on investment, also known as ROI, is determined after subtracting all costs that come included with renting out your property and the remaining should be your net rental yield.
Increase value in properties can also lead to selling and reinvesting in more properties or provide an equity line of credit for the purchase of higher value properties. This is one of the main reasons real estate can return on your investment. Rental properties are inflation-proof due to the increase in rental properties as mortgages can become expensive for the average person. With renters increasing in demand, rents go up.
Using leveraged assets from your properties can help you invest in more properties. Using $100,000 in property assets as a down payment for 3-4 properties yields greater return than investing in just one properties for $100,000.
Some investors tend to purchase low value homes hat need improvements. They calculate that the ARV or after repair value, exceeds the cost of repair. This what you call today “flipping” properties.
Real estate can become a way to be financially free if done correctly and by purchasing the right properties that will yield the best ROIs. For more information, contact us today! Together we can help you take the first step in real estate investing.