Residential Real Estate Investment
Residential rental property has long been a starting point for real estate investors. A residential rental is a conservative investment with lower down payments, higher leverage, lower interest rates, longer depreciation schedules and relative ease in getting into and out of the property compared to most other commercial properties.
This type of property often fill personal needs, such as starter homes for your kids, and a way to transfer wealth from one generation to the next. It can provide additional revenue to supplement your retirement income and keep you active.
These one and two family properties can be self-managed, maintained and leased, reducing costs to maximize return. They are, however, inefficient from an investment point of view, often leased at below market rents on the theory that you don’t want to lose a good tenant. They can become troublesome when the tenant damages the property or generally fails to keep the property clean and picked up to your expectations. And who covers the mortgage payment when the property is vacant or the tenant is late with the payment or fails to make it at all?
The residential investment at this level, is a great training tool for investor. The experience can enable you to become a much wiser investor for the next level of real estate investment and may well be worth the education while hopefully earning a reasonable return on your money.
If you would like to shorten the learning curve, find more efficient investments, reduce the risks and headaches of management, then give Gerspacher Real Estate Group a call and lean on our expertise to get you through the process faster and with better results.