12 Reasons Why Rental Properties Are the best Investment

It is no secret that I love multi-family rental properties. Rent-to-own or flipping properties might be fun but rental properties is my true business love. Let me explain why:

1. Ability to Purchase with Leverage

Rental properties are great because you can borrow the bank's or someone else's money to increase the potential return.

2. Ability to Hustle for Greater Returns

Not only can I leverage my cash, but I can also leverage my time and abilities to make magic happen in this game - something difficult to do with other investments.

3. Ability to Manage my Investment Directly

With a rental property, I am directly responsible for the outcome of my investment. It is up to me to analyze a property before I buy it; it's up to me to ensure the property is in a good condition and it's up to me to ensure the property is performing at peak performance.

4. People Always Need a Place to Live

The real estate market will go up and down, but the beauty of rental properties is that demand will never end. People always need a place to live, so unlike the latest tech trend, real estate investment is an investment that will last.

5. It's Worked for Millions of People Before Me

Perhaps one of the greatest benefits to rental property investing is the proof of concept handed down by millions of investors before us. Since the dawn of human civilization, landlords have built wealth by owning and leasing out residential property.

6. Fairly Stable and Predictable

Yes, events such as the market collapse in 2007 do happen, but rental property owners who were investing for long-term gains did not suffer like those who were trying to be fancy and were investing out of greed.

7. Incredible Variety

Rental properties also offer an incredible amount of opportunity within the asset class. I can invest in single family houses, small multifamily properties or large multifamily apartments. The possibilities are endless.

8. Simple and Straighforward

Although I will never claim that working with rental properties is easy, I do maintain that investing in rental properties is fairly simple and straightforward. The strategies for success in real estate investing is not overly difficult to learn or master.

9. I Can Buy Below Market Value

One of my favorite reasons for investing in rental properties is my ability to find properties that I can buy below market value by dealing with the Sellers directly.

10. Insider Trader is Legal

I know I won't end up in jail like Martha Stewart because  as a real estate investor I can leverage any secret knowledge I can find to benefit my investments. If I know that a new light rail or rapid transit is moving into a neighborhood, I can jump in and swoop up properties before word gets out.

If I hear that a major industry is leaving an area, I can get out of that area before the market declines.

11. Multiple Ways to Profit

One of the greatest benefits of rental property investing, especially compared with other real estate niches and strategies, is the opportunity to capitalize on all four of real estate's major profit sources:

 - Cash Flow

 - Appreciation

 - Mortgage Paydown

 - Tax Benefits

12. Not Having to Be Present to Make Money

Finally, I love the idea that I can make money without physically needing to be present. That's called a "job", and I want to avoid that.

Do understand that real estate is not generally a 100% passive activity, but over time, the systems you create can help you outsource most of the landlording process.

The dollars will roll in whether you get out of bed in the morning or not.