Real estate is one of the best ways to build your wealth. Before you make the leap, here are a few considerations you should make.
You can create some incredible wealth through investing in real estate, but only if it makes sense for you. There’s a little checklist that I’ve made that I think you should follow if you’re considering real estate as an investment.
The most important question to answer is, “Do you live below your means?” If the answer is yes, and you have money saved up, you’re going to be able to cover lost rent or maintenance expenses if need be.
One of the main concepts of investing in real estate is that your investment should appreciate over time. When you couple this with a steady rise in rental rates, you’ll be able to pay off your mortgage faster and see so much more passive income down the line. Once you get through the first five or 10 years of owning the property, it’s going to be a lot more fruitful.
The next question you should ask yourself is whether you’ll treat this investment like a business. Real estate can be emotionally draining, but it shouldn’t be. If you have a tenant, you need to treat them like a business professional or hire a property manager who can do that for you.
Finally, investing in real estate helps you diversify your investment portfolio. We’re seeing people get anywhere from 8% to 16% ROI on their real estate investments here in San Antonio.
If you have any questions about investing in real estate or about your unique situation, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.