One of the best parts of investing in real estate is that there are many different ways to make money. That means in some scenarios, risk can, at times, seem risk free. Now don’t get misunderstand, there is always risk involved when you’re investing. In other words, if you plan correctly, mistakes can be made if other areas of your investments are making money. This concept (multiple revenues of potential income) drives so many people to invest in real estate. Look at some of the methods below and see how they can help shape your goals in real estate investing.

Appreciation

It is widely known that the housing market roughly doubles every twenty years. This doesn’t mean there won’t be ups and downs in the line graph showing the movement of your income yearly. Various costs determine why prices rise consistently in the long term, such as land values and availability, labor costs, and lumber and other building materials. This makes real estate investment extremely attractive to some, as you know if you’re in it for the long haul, there is always, in fact, more money to be made.

Cash Flow

This is the basics of why everyone gets into investing in the first place. A method of generating cash flow every month. How can you quit your job if you have no money coming in? That is why when investing in real estate, you must ensure you’re only buying real estate that has lower monthly expenses than the rental income by a good amount.

Equity

If you buy a property for only $50,000 that resides in a neighborhood of, on average, houses that are $100,000, and you put in $20,000 to fix it up, you’ve just gained $30,000 in equity towards your net worth. Real estate investing is one of the only methods of investing that can have such a large turnaround so quickly.

Tax Advantages

In the United States, real estate investors pay the lowest taxes of any for-profit group. Using depreciation deductions against your properties, you can reduce your earned income tax on your cash flow.

Sometimes, all of these things can seem like a lot to take in, and if you don’t have a lot of time to run it like a business, it can be very stressful. That is why Buckeye Northwest Realty is here to help. Contact us today to learn more about what we can do to help with your real estate investing dreams! Our highly skilled team is comprised of dedicated property managers waiting to assist you in taking that next step!