Five Reasons to invest in your own Rental Property
(The information in this blog is not just for rentals in Warner Robins, we just use it as an example.)
Rental Real estate in Warner robins Georgia can be a good investment to explore if you are looking for another income to help with your paycheck job. There are multi-unit rental properties, commercial rental properties or single-family rental houses.
Why would anyone want to put their money into rental properties in Warner Robins anyway? I can give you lots of reasons, but here are the five easiest…
Warner Robins rentals make good passive income
Rental properties in Warner Robins Ga are some of the highest returns in the state. Cash on cash returns can reach 11-13% if you purchase the right investment. Rent is money that comes in to you whether you get out of bed or not!! While many stock investments can rise and fall without warning or control rents are steady and predictable income for landlords that manage their rentals properly.
Passive income is also taxed less than ordinary earned income. This helps build a retirement account faster. Rental property can provide many tax breaks that can offset your w-2 income. Check with your tax professional.
Provides flexibility of selling
In 2008, many people lost a lot of money when they sold their house during a down market. People owed more on their house then it was worth at the time they sold. Even today, if you are moving and need to sell your house, now may not be a good time. Is there enough equity in the house your selling to pay for closing, realtor commissions, etc.?
Renting a single-family house is a great way to wait out a down market and let someone else pay down the mortgage while you move to your next house. If the house is currently worth less then you bought it for, don’t sell. Rent it and wait till later. Even if you can’t rent it for enough to cover all the mortgage, you’re still losing less then settling a loss with the bank.
Many people, like military and contractors, have to sell after a short time for job related reasons and don’t have enough equity to sell the house without coming out of pocket. Renting your Warner robins house fixes that.
Renting your house offers better security for the property
Vacant houses are an invitation for neighborhood kids and squatters. Renting out a vacant house you can’t sell will put security on the property. Anyone living there will deter theft and vandalism. An empty house will fall into disrepair faster than an occupied house. Also, Insurance is cheaper on an occupied house.
Gives you a place to move back to
Many people who have transient jobs buy a house only to sell it in a few years. This strategy is ok when the housing market is climbing, but what happens when the market drops? Rent each house you buy in each town instead and have your own place to come back to.
Warner Robins Ga is a military town. There is also a steady supply of contracting jobs that only have people here for a short time. Many of these people stand a good chance of leaving a few years and coming back. If you are one of these people, why not rent the house and have it here for later?
Rental property provides tax deductions
Anyone will tell you that you can never make too much money. When it comes to paying taxes, you can. Renting your Warner Robins house will help offset taxes for high income earners. Your rental property becomes a deduction machine for many expenses; interest, depreciation, Property management fees, mileage and repairs can all be “above the line” deductions to help your adjusted gross income.
If you have a Warner Robins house your not sure if you want to sell or lease, contact us and we can explain all your options.