Why should you consider becoming a Landlord today?
How about a business that will generate passive income for you every month? By becoming a landlord, you can create a business worth millions for you today. Being a landlord is as easy as putting a small house on rent or by giving your apartment on the lease.
Becoming a landlord has turned out to be a lucrative business. The tenancy rates are high all around the globe and you can take advantage of this opportunity very well. Building an empire of rental properties has now become easy than it was ever before. This rental empire will create a legacy for you and for many of your generations to come. All this can be achieved at your comfort while being your own boss.
Why most people enter into a rental business is for the cash flow that their properties generate every month. You can also take advantage of the cash flow from your rental properties easily by becoming a landlord. Your rental property is attracting tenants who are paying you rent month by month. This cash flow can help you bear your expenses, loan payments, and build a portfolio gradually.
With the right information and planning, you can easily find a good investment property with positive cash flow. Positive cash flowing property is by far the safest investment strategy than other risky investment strategies like stocks and bonds. The real icing on the cake is having a rental property which is building both your equity and generating a positive cash flow every month. You can easily use this equity and cash flow to fund or leverage multiple rental properties.
Property Value Appreciation
Having a rental business not only provides cash flow. But you will also get benefited from the appreciation rates in your property. The equity value that you have put in your rental property will gradually increase over time. The equity in your investment has been building up slowly and can give you compounding benefits. You can expect a high payday if you ever choose to sell your asset someday. However, it strictly depends upon the location and the current price trend of the market.
The inflation rates are on an all-time high and this becomes a great opportunity for the real estate owners. You can definitely get a good buck for your investment during the time of inflation. During inflation, there is more currency in circulation which decreases the purchasing power of the currency. The currency is designed in a way that its value is bind to depreciate over time. This depreciation in currency or inflation of prices appreciates the value of your property.
Being into the landlord business comes with the advantage of using leverage to buy more assets in the near future. You can easily borrow other people`s money to increase the potential returns on your gains. The real estate comes with the option of leveraging, unlike bonds, stocks, and commodities. It is very hard to leverage your existing bonds, stocks, or commodities to fund your next purchase. It isn’t the case with real estate and you can easily fund your next rental property using leverage.
You can use this leverage to buy multiple rental properties and create a real estate empire. If you become able to understand the power of leveraging, you can easily multiply your returns on the investment. And it may even become possible for you to fund your future rental purchases with no money down. However, you should always calculate your leverage ratio. The equity to debt ratio should always be in a way that your rate of returns is higher than your rate of payable interest.
The next reward from becoming a landlord is getting taxation benefits from your rental income. If you are a landlord you can take advantage of tax deductions on your mortgage interest, insurance, and depreciation. You can further take deductions on the maintenance, management, and advertising expenses of your rental property. What`s more exciting is you can also deduct traveling costs to go to your property from your net taxable income.
A landlord can also get deductions of airfare, meals, and other hotel expenses if his rental property requires long-distance travel. The only thing required is properly documenting your deductions otherwise you can easily be caught up with IRS scrutiny. Becoming a landlord, you can mix both business and pleasure together with careful planning.
Also, a landlord can take advantage of capital gain tax if he ever sells his asset at a profit. The property appreciation will be taxed under capital gain tax instead of normal income tax if you hold the property for more than 1 year. The capital gains generally range between 0%-20% whereas income tax ranges from 10%-37%. So you can save a substantial amount of money with this.
Becoming a landlord can get you to retire early. You can become financially free at a young age or in a couple of years just after starting your rental business. There are many stories of landlords who have even created an empire of rental business with no money. And when they retire they have a huge cash flow every month to support their financial freedom. Sure, it takes time for you and you can also get financially free after becoming a landlord. It will require pro tips, planning, and correct implementation to land in the right place.
You can get financially free at a young age or in a few years if you start early and can plan well. This financial freedom will give you enough time to spend with your spouse and children. A lot of people today complain about a lack of time to do any productive tasks. But, it isn`t a case with the landlord business as you will be having plenty of time. You can invest that time in improving your relationships, planning new investment strategies, and much more. It is a complete win-win situation.
Be your own Boss
Who doesn’t want to be his or her own boss? Who doesn`t want to earn a fortune on their own terms? I think hardly there is anyone who doesn’t wish to have so. Becoming a landlord will give you the opportunity of becoming your own boss. You can work on your own terms and can still create a solid income plan for you. Being a landlord, you will choose who will stay or not stay in your house. Being your own boss gives you a sense of pride and a feeling of success that was always missing.
You are the driver of your own business. You can take your own decisions freely and not need to ask for it from anybody. This is a heck of a deal for anybody and you can get rewarded by this deal from becoming a landlord. Also, being a landlord, you need not work the old fashioned way. You don`t have any time constraints and you can flexibly and prioritize tasks. However, being your own boss comes with responsibilities too. You need to separate yourself from being just a landlord to a successful landlord to actually be your own boss.
Get Started. Get Rewarded
It is high time to become a landlord and live it on your own terms. If you looking to start today as an investor or as a business person. There is no better option for you to start with the real estate rental business. However, there are some downsides and pitfalls too.
You may question yourself becoming a successful landlord. It is also true that being a landlord is not easy and it is surely not for the weak-hearted. But, the benefits of becoming a landlord are huge and can easily outshine the cons.
The returns in the rental business are high and sustainable if you compare it with the returns of other investment strategies. You will always get a good ROI when you invest your money in real estate rentals. Your profits will be huge. You can take tax advantages, builds new relationships, and a bigger network.
The Bottom Line
Become a landlord and get yourself started today. Stop living a life that circles from paychecks to paycheck. You are not required to work for long hours and for the rest of your life just to pay the bills. Your life deserves better. The only thing is to get started and give you a chance to perform in the landlord business. So, take a plunge and start your wealth creation journey by becoming a landlord.