Real Estate Rental - Why Investors Should Invest In Real Estate Rentals

http://www.REIClub.com - Why Is a Real Estate Rental A Good Investment In A Down Market? Here's Why Real Estate Rentals Are A Good Option For Real Estate Investors...

Current Real Estate Rental Market:
Sources from Fannie Mae and Freddie Mac expect the total number of renters households to increase by another 4.4 million in the next few years, from the already 37million.

With the current Unemployment rate being at an all time high, more families are turning to renting than buying because of a) affordability b) flexibility. Buying a home has more liability especially for someone who is unemployed, so renting is safer.

Right now, the rental property market is one of the only areas of real estate investing that has increased in the past year. It is expected to grow even more until property values decide to stabilize.

One of the main reasons to rent properties is to collect on the appreciation, AND you also get pretty good cash-flow.

Why Not Sell in a Down Market
- Right now is NOT the best time to sell - Buyers market
- Miss out on appreciation
- Unless you bought the house during a down market - you're selling for a loss

Pros to Rental Properties
- Passive Monthly Income
- Commercial Rentals have Exponential Growth
- Appearance - does not have to be as nice as "for sale" property
- Good Tenant - maintains home and pays rent on time
- Security - more options if market changes than stock or bank institutions
- Tax Perks
- Depreciation - annual tax deduction for the loss in value of your real estate
- Tax break may offset Income tax from rent
- Appreciation - increases in value more frequently than it loses value
- Existing mortgage - rent covers principle

Cons to Rent Property - drastically reduced by good screening
- Late rents
- Vacancy periods
- Damages to property
- Issues with Tenants
- Maintenance / Insurance

Additional Tips:
- Owned real estate rental property 5+ Years - Contemplating selling - most likely lose money on a sale - renting is best right now, and you can claim your losses as a tax deductible.

If you're not in a rush for immediate capital, one of the best options for your money is to invest in rent / lease properties. It allows you the flexibility to wait for the market to appreciate, all while building equity and maintaining a steady cash flow. Many homeowners become "secret investors" because they never sell their previous home, they rent it. For the ones that move more than others...well you get the point. So leasing properties definitely has its long term advantages compared to selling.

Again, this is Frank Chen with REIClub.com. Please take the time to leave your comments for this video below and please subscribe to our YouTube channel so you'll be automatically notified when we upload more quick video tips for you. Take care and good investing.
http://www.youtube.com/watch?v=YEvvKsqvZhw

Category:

Education

Tags:

• real estate rental
• real estate rentals
• rent property
• rent properties
• rental property
• rental properties
• real estate rental property
• real estate rental properties
• lease properties
• leasing property
• leasing properties
• real estate investing
• real estate
• invest in real estate
• real estate investment
• real estate investments
• real estate investor
• real estate investors
• real estate club
• real estate investing club
• real estate investing clubs
• rei club
• reiclub

[bdot21]

You CAN'T loose something you never had. So, if you buy at 100,000 the market goes up to 120,000 and u sell at 105,000 u didn't loose 15,000 because you never had it to begin with. The potential was there but you didn't act on it so you never had it to begin with. You can't loose something you never had in the first place...

[reiclub]

@bdot21 If you are referring to the price going up after you sold it at $105K, then I would have to agree with you. But if what you are saying is, you priced it at $105K when the market clearly stated $120K, then you did lose money on the deal, because you could have made an EXTRA $15k if priced correctly.

[kd4slm]

Hey Frank,

Great Video.. What program (manage your real estate rental properties) software would you recommend to use as a part of doing your own Property Management. Thanks & Great Job!!

[reiclub]

@kd4slm - Hey! If you go to reiclub.com and go to the left "site navigation" toolbar. You can check out all the programs we carry, there's a lot. Let me know if you can't find what you are looking for, so I can further assist you.

[rbbellejr]

I would like to chat with you, do you have a contact number?

[reiclub]

@rbbellejr - shoot me a personal message and I can contact you.

[BigBearFromDaChi]

com

[BigBearFromDaChi]

He is correct. I've found something that has helped as an investor, entrepreneur, As well as my business and retirement portfolio. Here's a link if you want to check them out. rafaelnegron.strongbrookoffice­.

Thanks reiclub. You have taught me alot.

[oeojb]

THANK YOU - GRASIAS - :o)

[charlesfuchs]

Buying a home now is just dumb and ignorant. With the debt bubble happening soon in 3-4 years. there will be higher unemployment and interestes rates to hike.... housing will take another %20 hit....