Buying a Rental Property in Denver, CO
Investing in rental properties is not a new concept. It is a tried and proven way to grow long term wealth and can provide for a healthy retirement. The process is also very simple but does require a trained eye to identify a good deal from a bad deal. While the benefits of investing in rentals are vast, here are some of the key points:
- Understandable & Accessible - Real estate is one of the most accessible investments available. Rental properties offer a fantastic rate of return and require a fairly minimal amount of cash considering the longterm benefits. Plus, unlike many other investments, real estate is fairly easy for most people to comprehend.
- Tax Benefits - The U.S. government incentivizes real estate ownership as it benefits our economy. As such, real estate investments are deductible, deferrable and depreciable. We always work with our clients to make sure they are aware of benefits like the 1031 Exchange and mortgage interest deductions. Most importantly, we always suggest partnering with a tax professional to understand all these strategies. Every dollar saved is a dollar earned!
- Discipline - Rental property ownership is basically a forced savings account. Many people have best intentions to save money and invest in their future, but many simply do not follow through on a consistent basis and thus do not realize their true monetary potential. Because discipline and consistency is often neglected, a rental property is a great tool to ensure follow through. This is a longterm approach but it is one that is proven to have great potential.
- Stable - Home prices are typically slow to rise and fall. Thus, when compared with things like the stock market, having rental units as part of your investment portfolio can be a breath of fresh air.
- Great Piece of the Pie - While rental properties are a great longterm investment, we suggest diversifying. The great news is that when real estate is part of your investment portfolio, the overall rate of risk and volatility goes down.**
Wondering if rental properties are right for you? Call, text or email us! As real estate investment experts, we'd love to give you more information and help you decide what's best for you.
*All investments come with risk. While rental properties have historically shown to be a beneficial longterm investment, Feaster Realty cannot guarantee any return on investment.
**Gary Keller: 'The Millionaire Real Estate Investor', p. 108. Feaster Realty also used this book to confirm other findings on this page.