Single family homes are fairly economical these days, and if you have money, you should definitely invest in a couple of them. This statement was made by a reputed real estate firm, and there are so many others who agree with them. I do too.
Single family homes are a much better investment strategy than stocks, bonds, and gold. Why? Here is the answer.
Single family homes maximize your ROI
Single family homes can provide you with huge returns. You only have to pay the down payment, and the rest is funded by your lender. Yes, you will have to bear the monthly payments, but when rents start flowing in, the amounts you earn will be much greater than the monthly payments you have to make.
And by the way, since you only have to pay the down payment, it is not your cash that is on the line. Yes, you will need to use your skills and knowledge to make the investment a success, but as an investor, that should not be too hard for you.
Single family homes are an investment that grows rapidly
For all the talk that you may hear about mortgage rates increasing and homes becoming more expensive, trust me, they are still a lot cheaper than they were in the past. Will it always be this way? No, when home prices rise, your investment will also grow, and you will reap in the rewards.
Like I said, you just have to bear the down payment, and then the investment will itself provide you with returns, which you can use for your monthly payments.
Single family homes provide you with tax benefits
This is not just true for single family homes it is actually valid for the whole real estate market. For all investments that you make, there are so many tax benefits to enjoy. You are probably already aware that you can deduct your mortgage and property taxes from the taxable income. As for your rent, this is treated as a passive income, and so you have to pay no taxes on it.
Single family homes provide you with an instant cash flow
As long as you hire good tenants, your single family home provide you with a constant cash flow every month.
Source: www.aoausa.com
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