The 4 Annual Returns of Rental Real Estate !!!!
Real Estate is a great opportunity. Just read how Mike Perry summarizes it.
When I look all the ways Investment Real Estate returns a yield on your money, I'm shocked everyone doesn't want to own rental property ! Most other alternative investments only offer one annual return !When all 4 returns are combined they are called the Equity Yield( I call it the Grand Slam of rental real estate). Let's break them down :
1. CASHFLOW - the money remaining after paying ALL operating expenses and debt service. It is said that you make your money when you buy real estate not when you sell it ! Purchased correctly with our current historically low interest rates, rental propertys should provide positive cashflow !!!
2. TAX SHELTER - The government LEGALLY allows us to reduce our taxable income thru tax shelter thrown off by rental properties. Tax Depreciation allows a return of an investors original investment typically within the first quarter of total ownership ! So either continue to pay additional taxes to the US Treasury or keep it and build net worth !
3. APPRECIATION - Historically over the last 30 years real estate has grown at a rate that is greater than the inflation rate ! During that same time period , real estate has grown at an average of around 6%!Remember real estate has always been a Long Term Investment ! What are the current rates of interest that are being offered on CD's right now ?
4. EQUITY BUILDUP - Obtaining Wealth thru the efforts of others !!! Almost everyone in our country is making a monthly mortgage payment ! But in a large number of markets they're making that payment on somebody else's mortgage, not their own !!! It's called RENT ! Every month the investor's Net Worth increases thru debt retirement by simply depositing collected rent checks from tennants !
Well I guess you can see why I believe that everyone in our great country should have the opportunity to own not only their personal residence ,but numerous rental properties ! As a very wise man once said " Take Care while you are young to buy Rental properties, that will take care of you when you grow older !
Michael J. Perry
Keller Williams Realty Lancaster
www.LancasterRealEstateValues.com
1630 Manheim Pike
Lancaster, PA 17601
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