There are many reasons to invest in real estate. I've been investing in cash flow properties for about 10 years now and wanted to share my personal 3 Reasons Why I Love Investing in Real Estate:
1. Invest Locally
Every time you buy a single family home, duplex or apartment complex – you are investing in your local area. You are improving your local city and neighborhoods one house at a time and providing housing solutions for the people in your local market.
2. Cash Flow
Cash flow is my personal favorite reason for investing in rental homes and apartments. Investing in hard assets that produce income is a huge benefit of buying and holding investment property. Your tenants pay your mortgages and your cash left over after all your expenses is your net cash flow.
Imagine making $300 per month in net cash flow and not having to work much to produce it. If you invest in 15 houses, you could create $4,500 of monthly cash flow while enjoying all the other benefits of single-family homes.
3. Multiple Exit Strategies
A number of exit strategies can produce great results. You can be a landlord and enjoy rental income; you can use lease options as your exit strategy; you can sell with seller financing and enjoy income from your note, or you can sell the house outright to a new buyer (flip it).
Caution: New legislature defines specific rules for investors that flip their properties using seller financing. Here is a free real estate invesing training video that explains Seller Financing Dodd Frank Overview.
I can personally say that it's been very rewarding and profitable investing in various types of rental real estate deals. I think the flexibility that it affords me to be home with my kids is the best reason of them all- for me!
How about you? What are your top reasons for investing in real estate?