Are you struggling between flipping or renting a property? Make sure to save this 📌
Here are some PROS that I love about rental properties.
1. Monthly income. Whether short-term or long-term rental, monthly income, or consistent cashflow is the whole point why we love buying rentals 💰
2. Depreciation 📉 This is how billionaires pay no taxes. They write off the depreciation of the building over time. You can even depreciate more to write off more taxes by what's called cost segregation.
3. Less pressure. You may still have holding costs but it is not much compared to flipping a house.
4. Equity build-up and appreciation. When you have the equity added with the appreciation from your property, you can take out HELOC to buy more properties. We were able to buy our first rental property from the HELOC taken out from my parent's house.
5. Ownership. It's always better to own something than knowing that someday you need to give it back.
Here are the CONS of rental properties.
1. Fluctuating market conditions. You can have tenants today to pay your mortgage, but when they decided to stop renting and your cash flow drops below your mortgage, you're screwed!
2. Management issues. You have to do all the hard conversations if you're managing your rental property.
3. Lack of good tenants. You have to do your due diligence, screen them, and do a background check especially if you will live with those people.
Do you still think renting properties is for you? Let me know in the comments below 👇
Watch the full video of “Rent vs Flip” and subscribe on my Youtube channel. Link in bio 👆
Don’t forget to follow me @realestaceyy for more real estate tips, business, and mindset 💼🧠
