Why are rental investments so popular in North Texas?
Real estate investing is one of the best ways to safeguard your future. This is true, especially in North Texas. Historically, our housing market is on the rise. When our housing market dips, it is usually a small dip followed by a recovery. Here is a snapshot of the Collin County market trends over the past 10 years.
- Properties in the area are likely to increase in value over time.
- Population growth is exploding in Collin and surrounding counties.
- Corporations are flocking to the state to set up headquarters.
- North Texas schools are some of the best in the country.
All of these are great reasons to buy and also to invest in homes in the region.
4 Great Benefits Of Owning Rental Property
Cash flow is the result of subtracting all expenses from income. The key to figuring out your cash flow is to understand ALL of your costs. Expenses on a rental can include mortgage, taxes, HOA dues, homeowner's insurance, repairs, capital expenditures, property management, supplies, vacancy rate, etc. The more money you put down on the home, the higher the cash flow potential you will realize. This is a great article on calculating cash flow for your rental.
Beyond cash flow, investors should consider property appreciation. While not always, generally speaking, housing values tend to appreciate over time. An investor in a rental property needs to make smart and efficient repairs and improvements to the home over time, keep the home maintained, and buy in a desirable location. This sets you up for the best chance of appreciation. Read more about this subject here.
By taking out a loan for an investment property, you can leverage your resources to own more properties. As long as you have carefully calculated your cash flow, you should realize a more substantial profit. These are some great articles showing how leverage works.
Landlords have a few tax advantages over regular homeowners. They get to deduct items such as interest, insurance, maintenance, and even depreciation over time as business write-offs. Read more about that here.
What makes a house the right candidate?
The property should be in a desirable location where plenty of potential renters live. The home should be priced well - not over-improved or under maintained. The rental should produce a beneficial return on your investment. This is another great article to help you find the right home.
When you are ready to get started on your next investment home, give me a call. We can get started right away.