I get asked a lot why I love to buy long term out of state rental properties? While there are a ton of different strategies in Real Estate Investing, I think one is a great way to get your feet wet and build that generational wealth.
Enter…..Long Term Single Family Rentals!!!
There is so much to learn when you first start to invest that its a great strategy to master before moving to Flips, Multi-Family, and Syndications.
Those are great strategies, but not for Newbies.
I coach investors to really dig in and understand the reasons why Real Estate is so great. I teach them to analyze property numbers and most importantly be able to make a solid financial decision on how to purchase that first out of state rental.
In the ever evolving landscape of real estate investing, long-term single family rental properties have many benefits.
One in particular is CONTROL. I really value control when investing. I have dabbled in the stock market only to see my portfolio on a wild rollercoaster ride.
When starting out, I want maximum control. I feel as though, I personally, have my best interest in mind and single families allow this control.
One source of control is the 30-Year Fixed Rate Mortgage. Each W-2 earner is allotted 10 of these “GOLDEN TICKETS” for financing.
If rates rise, we’re set with a fixed rate.
If rates drop, we can refinance to a better rate.
What you owe on the mortgage will not change for 30 years, but the rent you collect from the tenant to pay that increases each year, thus giving you more and more cashflow each year.
Beyond increasing cashflow each year, you benefit from the Appreciation of the property.
Appreciation is that hidden benefit that happens over the long term.
Appreciation is the value of the home going up over time.
On average, across the Nation we are seeing a 5% Appreciation in this asset class each year. This is a huge win over the course of a 10-year period.
You can always access some of that by refinancing later.
While there are so many other benefits from investing in single family homes, I do believe that one of my favorite reasons is Demand.
Single Family homes are the most purchased and rented of all the real estate classes.
As long as people need a roof over their head than we as owners have that protection while investing.
That protection of avoiding the investment roller coaster lets me sleep very well at night.
After I grow my portfolio to 20-30 properties and master the single family rentals, then I may get into multi-family or syndications.
But for now, why change a good thing. I have built a portfolio of 14 properties and have seen the magic of this asset class right before my eyes.
If you want to join my happy clients and learn to purchase cash flowing rentals out of state than lets jump on a call to see if we are a good fit.
Crush Real Estate Investing,
Brian Waters
Real Estate Investor/Mentor
Let’s have a consult and discuss how you can benefit from a 1-on-1 coaching session, have a professional help guide you through the process or bringing you into one of our upcoming deals.
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