4 Ways to Make Money through Rental Properties!

Hello! I’m Daniel Keeton of the Keeton & Company Real Estate Team with Neumann + Dunn!

We wanted to take the time to talk to you about 4 ways to make money through investment properties! It’s a great, long-term, safe investment!

 

  1. Through the rent money that your tenants give you
    1. You give them a place to stay, and in return they give you rent money!
    2. You put that money towards the mortgage, and you’re building equity in your house
    3. More money going in than going out – cash flow!
    4. Invest the rental payments
  1. Through appreciation and inflation
    1. Over time, the value of things increases
    2. Home value increases 3% – 5%
    3. Homes in real estate increase 1.75% faster than the inflation of everything else
  1. Through the tax benefit of depreciation
    1. Your home will devalue because it needs work done to it
    2. Over 30 years, the IRS will depreciate the property to 0. Therefore, they give a tax right-off every year for the value of the house divided by 30!
  1. Through adding value to the property yourself
    1. Invest money into fixing up the property (such as paint, exterior work, etc.) to increase the potential value of the property!
    2. This is great because real estate is a tangible investment that you can make changes to yourself

 

We would love to talk more with you about rental and investment properties!  If you are looking anywhere in Central Virginia, we would love to answer your questions about financing, how to purchase properties, how to find a good deal, or how to screen tenants!

Give us a call or text anytime at  (804) 556-1228!

We look forward to speaking with you!!