The New York Times recently published a story about millennials investing in rental properties, and some of the things they uncovered were surprising – including the fact that many millennials (people born between the early 1980s to the early 2000s) can afford to buy their own homes and live in them… but they’re choosing to buy houses as investment properties, instead.
Should You Invest in a Rental Property?
Because buying a rental home has its ups and downs, there’s no one-size-fits-all answer on whether it’s right for you.
Pros of Owning a Rental Property
- Mortgage rates are pretty low at the moment, meaning that you could get a great deal on a rental property
- If you manage a rental property yourself, you could produce a positive cash flow right from the start (and that means extra income each month)
- You could be eligible for tax breaks for owning a rental property (but you’ll need to contact your tax adviser for specifics)
- You may be able to buy a vacation property and rent it out while you’re not using it
Cons of Owning a Rental Property
- Ultimately, you’re responsible for repairs and renovations – even if your tenants damage the house
- You may need to come up with a substantial down payment if you intend to purchase a property as a rental
- You’ll be responsible for finding tenants, checking their credit and references, and collecting the rent
- Profits aren’t guaranteed – particularly if you have a tough time finding a tenant
Are You Interested in Buying an Investment Property in North Florida?
If you’re looking for an investment property to buy in North Florida, we can help you find one that meets your needs.
We can even search for homes that are seller-financed, which you may find is beneficial.
Call us at 386-243-0124 or get in touch with us online. Tell us about what you need and we’ll make it happen.