We all know that a great way to start building your wealth is to invest in rental properties. Many small investors have been able to retire early with their rental income. But how? Well, the easiest way to start investing in a rental property is to convert your old home into one. When we are younger we usually all start off by investing in buying a small home, as years go on and families get bigger we upgrade into bigger homes. Most people would sell their old home and use the money for the down payment on the new home. Usually selling also means some extra cash to furnish the bigger home as well. However, investors should consider renting out their old home instead. This is a perfect opportunity to build another income stream and to get started within rental properties. Renting out your old home is the easiest way to try being a landlord.
Here are just a few more reasons why you should start by renting out your old home.
- You know your home- you know the aspects that need work, that are great about it and what annoys you, you untimely know what needs to be fixed. After all you have spent X amount of years of your life in this space. In contrast, you never know what problem you’re going to get with a property you haven’t lived in.
- Primary residence has better mortgage terms- It’s easier to obtain a mortgage for a primary residence than a rental property. The interest rate is also a little bit better with primary residence mortgage.
- It’s a great investment! From immediate monthly cash flow and long-term equity, to saving money on your tax bill, becoming a landlord can prove to be a very lucrative move.
Investing into Rental properties isn’t always going to be an easy walk in the park, you are going to run into issues, but focus on the solutions instead of the problems. Also remember, if you want good tenants, be a good landlord. Be friendly, and build relationships with your tenants. If you don’t want the daily duties of being a landlord and you’re more interested in getting that “mailbox money” or passive income without the labor, give C.A.B Group a call! We’ll manage the property and the tenants for you!