Benefits of Rental Properties

Long-term rental properties are my favorite way to invest in real estate and this is what I do advocate for.

It can take a lot of cash, but the returns are incredible if you buy right and are patient.

You can make over 15% cash-on-cash returns on long-term rental properties, and that does not include appreciation, equity pay-down, or tax benefits.

When you invest in real estate with long-term rentals, you must focus on cash flow. The best way to get a lot of cash flow is to buy properties at below market value, make repairs to increase value, and choose houses that will give high rent-to-purchase price ratios.

It is not easy to find properties like this as it can take you months to find the right deal for a long-term rental. Not every market has great rental properties either. You need to buy/build were the value of properties increase so much.

Invest in single-family (miniflats/ 2bedroom) rentals because they give better returns than multifamily (duplexes). However, in different areas of the country, multifamily properties may offer better returns. Part of the reason you may get better returns on single-family houses is there are more of them.

With more volume, there is a better chance you can find that great deal. Commercial rentals are tricky. Lease terms are usually much longer with commercial properties, but it can take a very long time to find a tenant.

There are many types of leases: some leases have the tenant paying for everything, including repairs and maintenance. Other leases have the owner paying for almost everything, including converting/remodeling the property to the tenant’s needs.

So if you are considering anything worthy of investing... Rental property is the best.

You can contact Asgaf Homes LLC to invest in any of our rental properties or help you to manage same.