Rental Real Estate Still the Best Investment

The Great Recession may have knocked real estate values for a loop but it did not change the basic premise that rental real estate is still the best investment value for most Americans. Values are on the rise again. However, this is a bonus and not the basis for investment.

The real story has remained the same through time. The rent coming in pays the mortgage on the property which, over time, allows the owner to have a debt free property that someone else paid for… it doesn’t get better than this! You put up the initial cash down payment-the rent pays the rest. Yes, there will be maintenance, taxes and insurance. That’s all tax deductible and usually covered by the rent, as well. One day, the property is all yours and producing retirement income. And as the real estate market always does, it has rebounded and doubled in value.

Today’s Millenial generation makes up 40% of our population and 90% of them are renters. This demographic is educated, have very good incomes, great credit scores and want nice rental homes. They are unlikely to cause any damage. It is a great time to buy an investment, put it in the hands of a property management company and collect the mortgage payment as rent!